The U.S. Department of Agriculture will release its long awaited report today about U.S. farmers’ planting intentions for the 2011/12 crop season. Given the current tightness in supply, in especially corn and soybeans, this report could set the tone for price developments over the next couple of months until weather becomes the sole focus ahead of the autumn harvest.
Below are the current consensus estimates and previous results. Total acreage is expected to increase by almost 9 million acres, or 4%, to 239 million acres. Some commentators have argued that such an increase would be very difficult to achieve and this increases the uncertainty ahead of the release.
With stocks to use at historically tight levels, an increase of this magnitude is required to avoid prices moving higher. Alternatively, prices will have to move even higher, especially on soybeans and corn, in order to ration demand.
More will follow later once the report is out.
source from: tradingfloor
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