A topic that is starting to gain traction in the market is new-crop acreage possibilities. Early estimates on new-crop acres for corn and soybeans indicate a rise from last year given the 17 million unplanted acres that were seen last spring.
Some of these are quite robust, even topping the number that would have been planted a year ago. The market is looking at these and plugging in the yield numbers that were released in the USDA baseline estimates. If correct, this would lead to sizable increases in ending stocks if demand remains constant.
These projections have had two different impacts on current trade. For one, neither corn nor soybean traders are seeing the need to push bids to secure needed acres ahead of planting.
It is also limiting the desire for buyers to step out and book new-crop bushels as they feel they will be able to buy later at a lower value.