USDA Estimates Corn Acres To Decline, Soybeans To Rise

Des Moines, Iowa (AHN) - Farmers are likely to plant and harvest less number of corn crops in 2008 compared to the last year, an official report said on Monday.

According to U.S. Department of Agriculture (USDA) report released in Washington, the expected corn planted acreage for 2008 was down by 7 percent to 87.3 million acres.

The market analysts had expected the the figure to be at 85.3 million acres.

While, the number of corn crops harvested is projected to go down by almost 9 percent to 78.9 million, compared to 78.9 million acres in 2007.

The USDA had projected in March that 78.8 million acres of corn crops will be harvested and 86 million acres will be planted in 2009.

The report showed the decline in the acreage percentage of land for corn crops is due to the recent Midwest heavy flooding, which damaged the plants pushing the corn prices higher.

The official report also said that there will be an increase by 17 percent to 74.5 million in planted soybean acres during this year, which was just one percent below the acreage in 2006.

The market analysts had expected the the figure to be at 74.2 million acres.

The area of harvest of soybean crop is expected to be at 72.1 million, which is around 15 percent up from 2001.

The USDA had projected in March that 73.8 million acres of soybeans will be harvested and 74.8 million acres will be planted in 2009.

The higher-than-expected acreage and quarterly grain stock projections from U.S. Department of Agriculture pulled down the market just after the bell.

Corn futures surged from $6-a-bushel in early June to $7.5475 for the July contract on Friday. On the CME Globex electronic system, soybean for the July contract edged up momentarily above the $16.00-per-bushel markt to set a new record at $16.04 3/4

The report survyed 1,200 farmers in flood-affected areas in the Midwest from June 23 to 25 indicated that they intend to harvest 90.4 percent of those corn planted acres, which is down from 92.4 percent during early June.