The report, issued Friday, presents some uncertainty, Lines says. Farmers might not have finalized their plans when the March 1 survey was taken. In February, USDA projected 1.5 million fewer corn acres, compared to 2.8 million fewer acres indicated in Friday's report. Things could change rapidly next month as weather conditions throughout the Corn Belt have a more immediate impact on farmers' planting intentions, Lines says. Good weather in late April and early May would favor corn, which requires a longer growing season for optimal yields.
Lines says last season showed that farmers' actions can defy the planting intentions report.
Favorable early weather prompted them to plant 1.6 million more corn acres than intended on March 1, 2000. The good weather across the Midwest encouraged more corn planting than what USDA reported. The USDA report also could influence farmers' planting intentions, Lines says. The report itself could change things, given the downward tilt in corn acres by 2.8 million acres. That has the potential to strengthen corn prices, especially if we get an exceptional positive response for corn.