Plans for a large decline in soybean acreage and a large increase in corn acreage is expected to be revealed in USDA's Prospective Plantings Report to be released on Mar. 30 says IL Extension's Darrel Good. "If planned acreage of either crop is judged to be too small or too large, the market will have 3 to 4 weeks to try to alter production plans." Read more at: http://www.farmdoc.uiuc.edu/marketing/weekly/html/031207.html .
Darrel Good says last year "The March report revealed intentions to increase soybean acreage by 4.863 mil. and to reduce corn by 3.76 mil. acres. The market judged that to be too large a shift so that prices adjusted. However, the price adjustment was not large enough and did not persist long enough. Soybean planting increased by 3.49 mil. acres and corn plantings declined by 3.452 mil. acres in 2006. If a significant change from intentions is judged to be needed this year, price changes will have to be more decisive."
If you have 2006 unpriced corn in storage, Extension Specialist Jim Hilker at Michigan State wants you to consider putting a cheap out of the money put under it for 5-16¢/bu. depending on the level of protection you want. He says the market could drop like a rock if the Prospective Planting Report shows 12-13 mil. more acres of corn could be planted. Hilker's analysis is at: http://www.msu.edu/user/hilker/outlook.htm#corn .
The late February highs in the corn market will not be exceeded before the Mar. 30 report says Purdue's Chris Hurt, and he suggests marketing some old and new crop before then. "When ready to price old-crop, be sure to ask about bids for June or July delivery. At some locations, those bids are sufficient to cover storage costs. This is especially true at locations that have an ethanol plant starting in production this spring." Read more at: http://www.agecon.purdue.edu/extension/prices/grains/corn.asp?ID=40 .
The Extension Update on Central Illinois Agriculture is e-mailed on Friday to selected subscribers and is also on the Internet (at www.extension.uiuc.edu/macon/agupdate/ or www.farmgate.uiuc.edu .) It is created weekly by former Extension Specialist Stu Ellis, who remains reachable at: shellis@uiuc.edu .
