Friday, June 29, 2012

More corn acres but not much additional production

Some noteworthy changes from the USDA Acreage report, particularly from some geographical switching.
1) Corn acres were adjusted up by 500,000 acres but I'm showing a more modest bump in production. Why? Acres increased in Illinois and Indiana where the drought seems to be hitting the hardest and shifted out of Iowa where things have thus far remained okay
2) Soybean acres jumped a bunchy and add to that the trade of  from 1) where bean acres in Iowa jumped while they fell in Illinois and Indiana and you get a nice production increase for soybeans from this acreage change.
3) the change in cotton acres (a drop of 600,000 acres) trimmed 1 million bales off of my estimate I'm down at 19.6 million bales which is still a large production number given  my US harvesting rate (read Texas) is much higher than that proposed by USDA.

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