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USDA leaves acres alone
Some grain market analysts were surprised—and disappointed—that Wednesday’s USDA supply and demand report made no changes to planted acre estimates, in spite of obvious planting problems this spring.
Apparently, USDA has decided to wait for the June 28th acreage report before updating its estimates of planted acres.
Alan Brugler of Omaha-based Brugler Marketing says one of the factors in the final planted acreage numbers will be how many corn growers are using the Prevented Planting (PP) option.
“I’ve had conversations with a number of producers in northern Iowa in particular—and southeast Minnesota—and they’re telling me they’ve already filed for PP,” Brugler says. “They (USDA) won’t necessarily have PP data in that June 28 report, but they’ll at least have hard data on the rest of the planting progress.
“We’ll find out if there was any acreage that was picked up due to the price level, that maybe wasn’t in the March intentions—and they may have enough data at that point from guys switching to beans or making or decisions to tweak the acreage, on the 28th.”
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