Informa Economics, a respected private grain advisory firm, today released its widely anticipated acreage numbers for next year's bean and corn crops.
The firm projects a whopping 88.3 million acres will go to beans next year here in the US with corn acreage at 88.3 million as well. That is up 4 million acres from this year's bean acreage number. On the corn, we had 90.9 million this year.
Soybean prospects are strong because of the high prices compared to corn and the fact that they are cheaper to grown.
The beans were acting heavy in today's session but it does seem as if the Informa numbers added to some of the selling pressure that we are currently seeing in there.
Keep in mind that the recent rally has occurred in spite of the USDA projecting a nearly 33% increase in total global bean supplies over the next year. Logistical issues related to rail car and truck availability, as well as slow farmer sales, have contributed to the recent panic buying among some end users of meal but maybe the market is coming back to grips with the fact that there is not going to be any shortage of beans this year.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
Trader Dan's Work is NOW AVAILABLE AT WWW.TRADERDAN.NET