Managing for Profit

Unexpected acreage numbers put strength in soybeans

Before USDA reports were released Friday the corn market was about eight cents a bushel higher.  It retreated to a penny higher just after the report came out and ended the session about a dime higher.  Soybean futures were a bigger surprise closing about 30 cents higher, said Matt Hines, an analyst with Loewen and Associates, in an interview with Brownfield’s John Perkins.  In the Acreage Report, Hines says corn was a significant mover.

“Corn acres up to 90.886 million acres,” Hines told Brownfield Ag News following release of the report Friday, “that’s 890,000 [acres] above the March intentions.”

On the other side, however, Illinois and South Dakota corn were each down 200,000 acres.  Indiana lost 100,000 corn acres.

It’s a surprise that there weren’t as many soybean acres as were expected, said Hines.  Most pre-report estimates showed expectations of between 300,000 and 400,000 additional soybean acres.

“They came out actually near unchanged at 89.5 million [acres],” he said.

AUDIO: Matt Hines (3 min. MP3)