Post

USDA lowers corn acreage estimate from March to June

USDA’s planted acreage estimate for corn is the second largest on record, but was actually down from March, catching many by surprise.

Allendale Inc. Vice President Joe Victor tells Brownfield that probable decrease in crop size should lead to even tighter supplies, “Ethanol usage has been strong and so have our exports and that’s one of the wildcards – This market perks up every time that China is a buyer.”

Victor says the March to June decrease in the acreage estimate implies a reduction of 123 million bushels from the March projection but says that could be made up by the early faster planting pace and a higher average yield.

However, it is important to note that these numbers are as of June 1 and do not take into account weather related issues since the end of May.