By: Todd Hubbs, Department of Agricultural and Consumer Economics, University of Illinois. farmdoc Daily.
The USDA’s August crop production forecast delivered a shock to corn markets with much larger production than expected. Market participants continue to question the size of the 2019 corn crop, in particular, harvested acreage and yield come in for much speculation.
Producers reported they planted 90 million acres of corn and intended to harvest 82 million acres for grain. Initial reaction to 90 million planted acres with 11.2 million acres of prevent plant corn approached complete disbelief. The switch into corn acres happened for both the prevented planting decisions and crop planting. The expansion of corn acres reduced soybean acres in particular. When matched with FSA data on reported planted acres, the possibility of USDA lowering planted corn acreage by a significant amount this year seems very low. Continue reading