GRAINS: Soybeans Increase While Corn Declines in Acreage Battle – Reuters

Soybeans Gain, Corn Eases Ahead of Acreage Report

• Weak crude oil prices and a stronger U.S. dollar impact corn market
• Wheat also declines alongside corn in light trading
• Upcoming USDA acreage and quarterly stocks report on Thursday

By Karl Plume

CHICAGO, March 30 – U.S. soybean futures experienced an increase for the second consecutive day on Wednesday, while corn prices retreated in anticipation of a government report expected to indicate that U.S. farmers will plant more corn and fewer soybeans this year.

The corn market was affected by weak crude oil prices and a firmer U.S. dollar, which also pressured wheat prices. However, trading conditions were erratic with lower-than-average volume as investors adjusted their positions ahead of the highly anticipated reports from the U.S. Agriculture Department set to be released early on Thursday.

"Traders are just evening up their positions and are hesitant to make any significant changes so close to the report," noted Shawn McCambridge, an analyst with Prudential Bache Commodities. "The impact of the weak crude oil and strong dollar is present, but the overall uncertainty surrounding the reports is what really matters right now."

The upcoming USDA report is particularly significant as it will offer forecasts on what grains U.S. farmers are expected to plant this spring, which will be crucial for the prices of wheat, corn, and soybeans.

Analysts predict corn seedings to be around 91.839 million acres, slightly below the USDA’s earlier projection of 92 million acres but significantly higher than last year’s total of 88.192 million acres. In contrast, soybean planting is estimated at 76.87 million acres, which is below the USDA outlook’s 78 million forecast and less than last year’s figure of 77.404 million acres.

Additionally, the quarterly stocks report is anticipated to show minor increases in U.S. wheat and soybean stocks as of March 1 compared to the previous year, along with a notable decrease in corn supply.

As of 10:28 a.m. CDT, May corn futures on the Chicago Board of Trade (CBOT) declined by 1 cent, or 0.1 percent, to $6.70-3/4 per bushel, whereas May soybeans rose by 10 cents, or 0.7 percent, to $13.71-1/2 per bushel.

"There’s been a trend of buying soybeans and selling corn over the last three days. Traders seem to expect there may be larger-than-anticipated corn stocks in tomorrow’s report along with expectations for larger corn acreage and smaller soybean acreage," stated Roy Huckabay, an analyst for The Linn Group.

May wheat futures fell by 4-1/2 cents, or 0.6 percent, to $7.32-3/4 per bushel. European benchmark wheat futures also declined, with May futures in Paris dropping 1.75 euros, or 0.7 percent, to 238.75 euros a tonne.