CBOT Corn and Soybean Futures Experience Significant Rally on USDA Planting Estimates and Stocks Data

USDA Reports: Corn Demand Boosts Futures, Wheat Plantings Hit Lowest Level Since 1919

Chicago, March 31 - The Chicago Board of Trade soybean and corn futures rose on Tuesday following the release of two government reports forecasting robust corn demand and lower-than-expected soybean acreage. The U.S. Department of Agriculture's prospective plantings report estimated that farmers intend to plant 95.338 million acres of corn, down from 98.788 million acres last year. Analysts had expected a reading of 94.371 million acres.

The USDA's quarterly grain stocks data was also released, showing that farmers will plant fewer acres of corn and more acres of soybeans than last year. Meanwhile, soybean plantings will expand to 84.7 million acres from 81.215 million acres last year, the highest in two years, but below analysts' expectations.

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The persistent dryness in the U.S. Plains has threatened to curb winter crop yields, pushing wheat futures higher for a second straight session. Market analysts are concerned that the dry conditions may also impact the start of the corn and soybean growing seasons. In Kansas, 40% of the crop was in good or excellent condition as of Sunday, down from 46% a week earlier and 49% a year ago.

Wheat futures ended the day up 9-1/4 cents at $6.16-1/4 per bushel, while soybeans settled 11-1/4 cents higher at $11.71 per bushel. Corn ended up 2 cents at $4.57-3/4 per bushel. The USDA also reported that the all wheat planted acreage this year is estimated at 43.8 million acres, down 3% from a year earlier, which would be the smallest wheat acreage planted since the agency's records began in 1919.

The rally in wheat prices is attributed to investors betting that the Iran war will end sooner rather than later, which could lead to increased imports of wheat and boost demand. The U.S.-Israeli war on Iran has driven up both fertilizer and fuel prices, making corn and wheat less attractive to growers.