MORNING TRADE : CORN IS TRADING LOWER AND BEANS AND WHEAT ARE BOTH TRADING HIGHER THIS MORNING.

Good Morning,

          Nearby corn futures closed 12 cents higher and new crop closed down 27 cents following Friday's USDA report. The corn acreage number surprised the trade coming out at 97.38 million acres. The average trade guess was 95.4. This was very close to USDA's March estimate of 97.3 Most of the increase in corn acres came from the southern states where corn was planted in place of cotton. Many in the trade still believe that there should have been some reduction made to corn acres overall due to the extremely wet conditions in many key states. The June 1st stocks report was actually friendly coming in at 2.764 billion bushels. This was lower than the average trade guess of 2.845 and resulted in a rally in old crop corn prices. The soybean market closed 16 cents higher on old crop and 23 cents lower on new crop. The acreage number on beans came in at 77.7 million which was pretty much in line with the trade estimate of 77.8. USDA did however come in higher than their March estimate of 77.1. Some adjustment to the actual bean planted figure could come down the road as a lot of planting was still going on prior to the release of the report. USDA put the June 1st soybean stocks at 435 million bushels which was lower than the trade expectations of 442. This was bullish for July soybean prices as old crop bean prices ended the day 16 cents higher. Currently corn is trading a penny lower, beans are up 30 cents and wheat is up a penny. 

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