|Today had the USDA release their much-awaited Prospective Plantings report.
The main takeaway points:
Corn – The US corn area is estimated at 89.5M acres, down 4% from last year. As a result, Chicago corn markets have pushed higher following the report. Increased input costs are likely a predominant driver behind the reduced corn area. As a result of the smaller area, new crop corn reached new contract highs for December 22.
Soybeans – The US soy area is estimated at 91M acres, up 4% from last year, taking ground away from corn. As a result of the larger area, overtaking corn, new crop markets came under pressure.
Wheat – Total wheat planting in the US is estimated at 47.4M acres, up 1% from last year. Winter wheat 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.
Find the full report here
US Export Sales
Weekly US wheat net sales were fairly disappointing at 95Kt for 2021/22 were down 39% from last week, with exports of 349Kt.
Weekly US corn net export sales were also somewhat lacking at 636.9Kt for 2021/22 were down 35% from last week and 53% below the prior 4 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 exports at 670Kt were also up 22% from last week