Markets rally after USDA counts lower-than-expected corn and soybean acres

With all eyes in the grain market paying close attention, the USDA delivered a bullish acreage report on Wednesday morning.

The department estimated U.S. corn acres at 92.7 million acres — up from 91.1 million in the March planting intentions report, but still just over a million acres lower than the average pre-report trade estimate of 93.8 million acres.

Soybean area also came in below pre-report expectations. The USDA estimated soybean acres at 87.6 million, compared to expectations of just under 89 million acres.

Wheat acres, however, exceeded expectations, with the USDA pegging all-wheat at 46.7 million acres, compared to a 45.9 million acre pre-report trade estimate, mainly due to higher than expected winter wheat acres. It should be noted as well that this number still represents the fourth lowest wheat area since USDA records began in 1919.

The USDA also published its quarterly grain stocks report on Wednesday. The estimates for corn, soybeans, and wheat as of June 1 were all slightly lower, but very close to trade expectations.

Related: No surprise as canola acreage increases in latest StatsCan report