USDA prospective plantings data: Soy takes ground away from corn

By Jane Byrne contact

- Last updated on GMT

© GettyImages/Vitalii Petrushenko
© GettyImages/Vitalii Petrushenko

Related tags: Soy, Usda, Corn

The USDA released its much-awaited prospective plantings report yesterday, taking markets by surprise with a larger than expected reduction in the US corn area and an increase for soybeans.

However, this is a pre-planting report, and, as last season highlighted, prospective planting data and eventual harvest area can differ significantly,”​ said CRM Agri in a review of the data.

In terms of the highlights from the US Department of Agriculture (USDA) report, those UK analysts noted that the US corn area is estimated at 89.5M acres, down 4% from last year.

Chicago corn markets pushed higher following the release of the data. 

Increased input costs are likely a predominant driver behind the reduced corn area, said the grain market specialists. “As a result of the smaller area, new crop corn reached new contract highs for December-22.”

The US soy area is estimated at 91M acres, up 4% from last year, taking ground away from corn.  

Total wheat planting in the US is estimated at 47.4M acres, up 1% from last year. “Winter wheat is estimated up 2% year on year, while the spring wheat area is estimated to contract by 2% from last season, but it needs to be remembered that drought caused an 11% drop in spring area from planting to harvest last year so harvest area could still potentially be up year on year.”

US export data

Meanwhile, looking at weekly US export sales data, net sales for wheat were deemed to be disappointing, at 95Kt, for 2021/22, down 39% from last week.

Weekly US corn net export sales were also somewhat lacking at 636.9Kt for 2021/22, lower by 35% from last week and 53% below the prior four-week average. Exports of 1.88Mt were up 26% from last week.

Weekly US soybean sales continued to impress, however, with 1.3Mt of sales, up 11% from the last four-week average. Soybean exports, at 670Kt, were also up 22% from last week, noted CRM Agri.

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