Monday, April 7, 2008

USDA Planting Reports

Corn Acreage Down Wheat Up
(WASHINGTON) The Prospective Planting report released by USDA today shows the nation’s corn growers intend to plant 86-million acres of corn this year. That’s an eight-percent decline from 2007. The USDA blames the decline on strong prices for other crops not to mention high input costs for corn and crop rotations.

Analyst Heather L. Jones of Capital Markets said growers are on track to produce just 200 million bushels of corn. She thinks that will tighten demand and force drastic changes, she told the Capitol Press there might not be enough corn to go around.

"That is an untenable inventory demand, in our opinion," said Jones. "Consequently, we believe demand must be rationed or there needs to be a big supply response from other growing regions of the world."The plantings report had has meat producers concerned especially after a tough year spent offsetting high input costs and even higher corn costs.

Winter wheat plantings are pegged at 46.8-million acres. Of that some 32.5-million acres are hard red winter, 10.7-million are soft red winter and 3.63-million are white winter. The USDA says spring wheat for 2008 is expected to top 14.3-million acres. Thirteen-point-six of those acres are hard red spring wheat.

Spring wheat planting was also forecast to climb 8 percent to 14.3 million acres. Together with winter wheat seeded last fall, all wheat seeded for harvest is projected at 63.8 million acres, an increase of 6 percent from 2007. That won’t be a record in 2008…the record stands at 88 million acres planted in 1981.A look at the markets explains the upsurge in wheat. The first of April saw the all-wheat price, at $11.70 per bushel, up $1.72 from February and $6.95 above the March 2007 price

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