According to the U.S. Agriculture Department, U.S. soybean and corn plantings were smaller than expected this spring.
Thus there are raising concerns about global supplies as a separate report showed that domestic stockpiles were already at multi-year lows.
The data shocked the market, sparking a rally in Chicago Board of Trade corn and soybean futures, both of which had been trading sharply lower ahead of the reports.
In particular, corn plantings totaled 92.692 million acres while soybean plantings came in at 87.555 million.
That compares, however, with the government’s March pre-planting forecast for 91.144 million acres of corn and 87.600 million acres.
Analysts had been expecting the report to show corn acres at 93.787 million and soybean acres at 88.955 million.
In its quarterly stocks report, USDA said that US domestic corn supplies as of June 1 stood at 4.122 billion bushels, the lowest for the time period since 2014.
Soybean stocks came in at a six-year low of 767 million and wheat stocks were 844 million, also the lowest in six years.
Analysts had predicted corn stocks of 4.144 billion, soybean stocks of 787 million and wheat stocks of 859 million.
What will happen from now on we do not know ….
Good luck to everyone …
