(Adds analyst comments, closing prices)
By Mark Weinraub
WASHINGTON, March 31 U.S. farmers plan to seed a
record amount of soybean acreage this spring, even with supplies
trending near all-time highs, but wheat seedings will fall to
the lowest on record, the government said on Friday.
Growers will dial back their corn seedings this spring
despite signs of firm demand as record stocks have cast a
bearish tone over the futures and cash markets this year,
threatening profitability for farmers.
The U.S. Agriculture Department said in its prospective
plantings report that U.S. soybean plantings were expected at
89.482 million acres. If realized, that would top last year's
soybean acreage of 83.433 million, which is the biggest to date.
Corn plantings were seen falling 4.3 percent to 89.996
Chicago Board of Trade soybean futures fell sharply after
the report was released and the May contract closed at
$9.46 per bushel, after hitting its lowest level since Aug. 4.
Corn futures dipped briefly before moving back into
positive territory and closing up 6-3/4 cents at $3.64-1/4 per
bushel, after reaching their highest level since March 20.
"It is a bearish report for beans on all sides, the stocks
are higher and the switch away from corn was bigger than anyone
figured," said Jack Scoville, analyst at the Price Futures
Analysts had expected the report to forecast soybean
seedings of 88.214 million acres and corn seedings of 90.969
million, based on an average of estimates in a Reuters poll.
Wheat seedings were seen at 46.059 million acres, down from
50.154 million and the lowest on record. The average of
analysts' forecasts was 46.139 million wheat acres.
"This is the continuation of a long-term trend that I do not
see reversing in the near future," said Todd Hubbs, an assistant
professor of agricultural commodity markets at the University of
Wheat futures ended Friday slightly higher with the May CBOT
contract up 5-1/2 cents at $4.26-1/2 per bushel. Wheat
prices are so low currently that many farmers are struggling to
break even on the crop.
On the supply front, USDA said domestic soybean stocks as of
March 1 stood at 1.735 billion bushels, the second-biggest on
record and the largest March 1 reading since 1.787 billion
bushels in 2007. A year ago, soybean stocks were 1.531 billion
Corn stocks as of March 1 were a record 8.616 billion
bushels, topping the 8.248 billion bushels reported in March
1987. A year ago, corn stocks were 7.822 billion bushels.
USDA said users burned through a record 3.770 billion
bushels of corn from Dec. 1 to March 1. The soybean drawdown
during that time was 1.164 billion bushels, the third-biggest
ever but lower than 2015 and 2016.
Wheat stocks stood at 1.655 billion bushels, the biggest
since 1988. The bearish supply picture pushed wheat futures
to two-month lows.
Analysts, on average, had expected soybean stocks of 1.684
billion bushels, corn stocks of 8.534 billion bushels and wheat
stocks of 1.627 billion bushels.
(Additional reporting by Michael Hirtzer in Chicago; Editing by
Chizu Nomiyama and Matthew Lewis)