However, this pattern is expected to be temporary. Warm weather and sunshine should be quite beneficial to the crops west of the Mississippi River in the next week and a half, provided temperatures stay below the mid-90s. However, the heat could have adverse impacts on crops in drier areas east of the Mississippi. Short-term price movements are potentially quite sensitive to perceived weather threats since many speculators still hold short futures, and would have to buy to exit the market. Stocks and Acreage Numbers USDA s National Agricultural Statistics Service made a nation-wide survey of farmers in late May and early June to determine this year s planted and potential harvested acreage of major crops.
Cottonseed competes with soybeans.
Over the last 20 years, the June 30 acreage report has, on the average, understated final corn and soybean acreage by 0.5 and 0.6 million acres, respectively. Most of the corn and soybean stocks are currently being financed under CCC price support loans that will mature from August through October. At loan maturity, many agricultural lenders will be reluctant to provide private financing, thus forcing much old-crop grain into market channels. Timely rains will be needed to maintain crop conditions in Ohio, Michigan, Indiana, and the southeast, where rainfall has been well below normal. Above-trend U.S. yields would create the potential for moderate to severe storage space problems during the fall harvest.