USDA’s June Planted Acreage and Grain Stocks Report will have bearish impacts on commodity markets. Chad Smith has details on which supplies will be up and which will be down this fall.

Smith: The June Planted Acreage report showed more corn and cotton acres than expected. Betty Resnick, an economist with the American Farm Bureau Federation, says numbers are up in almost all categories.

Resnick: There's a lot more corn out there than we realized going into the report. It's up about 1.5 million acres over the March Prospective Planting Report and about a million acres over trade expectations. Cotton was similarly much more planted than we realized. Cotton planted acres increased by about a million acres over the March Prospective Planting Report, which was almost 10 percent, and that was also quite a bit over trade expectations. Soybeans, on the other hand, down compared to the last report and trade expectations. And for quarterly stocks for corn, soybeans, and wheat are all well-above trade expectations, and year over year, all three crops are up over 20 percent.

Smith: While flooding in the Upper Midwest will impact this year’s crops, the report was compiled too early for those impacts to be reflected.

Resnick: The surveys for this report were all done on the first half of June, which was before that flooding really set in. In addition, those acres still got planted. What we will see is likely a lower percentage of corn and soybeans harvested this year as compared to normal. And we'll have to kind of wait and see on how many acres are impacted in Minnesota and Iowa and South Dakota.

Smith: While the USDA’s weekly crop progress report will give updates on current conditions, she says the next big report is less than two weeks away.

Resnick: The next bigger report will be the WASDE report for July, out on July 12th.

Smith: Keep an eye on fb.org for more information. Chad Smith, Washington.

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