How Much Corn? USDA's First Acreage Estimate Seen as Very Bearish

Grain traders are questioning whether the USDA played an early April Fool’s Day joke with its corn acreage projection in the department’s March 31st acreage estimates.

The Prospective Plantings Report included a projection of 93.6 million acres of corn in 2016, well beyond the trade’s average expectation of just under 90 million.

The soybean acreage estimate was in line with analysts’ guesses at 82.2 million acres, while the USDA’s all-wheat acreage number was lower than the trade predicted, coming in at 49.6 million with surprisingly low spring wheat area.

There were no major surprises in the Quarterly Stocks Report, with March 1 stocks generally within the range of expectations.

Some Twitter reaction to the report:

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