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Market confusion continues in grain trade

A grain marketer says USDA’s corn numbers were the biggest surprise to traders Monday.

“Corn number both on the production and demand side of things were just more negative than traders had been anticipating.”     

Angie Setzer with Michigan-based Citizens Grain tells Brownfield while soybean acreage was reduced, some expected to also see a drop in yields.

“On the soybean side of things, somewhat surprising compared to what traders were expecting, up the yields were unchanged with many saying that’s probably going to need to come down in subsequent reports.”   

Record prevented plant claims were also reported by the Farm Service Agency which Setzer says hasn’t helped clear up what’s happening in fields.

“A lot of people were hoping that would clarify what was taking place, if anything, it caused more confusion.” 

Setzer says limit down trade for corn spilled into soybeans, wheat and into livestock Monday, and it could take a while for the market to sort itself out.

South Dakota farmers filled the largest number of prevented planting claims this year, nearly four million acres went unplanted because of wet conditions, mostly corn acres.

About a million and a half acres went unplanted this spring in Illinois and Ohio.

Missouri, Arkansas, and Minnesota also had more than a million acres of claims.

FSA reports 19.2 million acres across the country were unable to be planted, 11.2 million of which were corn acres.

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