July 2—USDA's June planting report and beneficial rains the week prior to its release triggered a selling mood. The USDA estimated 2007-'08 plantings at 92.9 million acres in the June 30 report. This was an astonishing 19 percent increase from the prior year and a 3 percent increase from the previous estimate in March. This was the highest planted corn acres reported since 1944 when 95.5 million acres were planted. Despite a wet spring in the western Corn Belt, producers were enticed by higher prices which encouraged the push to get corn planted. Increased acres were noted in Iowa, Illinois, Indiana, Minnesota, Missouri, Nebraska and Ohio. However, North Dakota reflected a decrease of 100,000 acres.



The USDA also released the June 1 corn stocks. This figure was 3.53 billion bushels, a 19 percent decrease versus the same period a year ago. The usage from March to May of 2007 was 2.53 billion bushels versus 2.63 billion bushels the same period a year ago.

Weather can still be a caveat in this corn situation. The yield factor will be what the market trades from this point forward. Assuming a 91.95 percent harvested figure, a 156-bushel yield would equate to a 13.325 billion bushel production number. One would expect to see prices fade away into the fall, especially if perceived yields increase. The market could break easily to the $3 per bushel mark by fall, but to do that still this summer would be a push. The weather would have to be ideal and the chances are still greater to "kill" the crop one more time before harvest.