The USDA’s June 30 Grain Stocks and Acreage reports will provide the most important fundamental information for all three crops, he noted.
Consumption data and a strengthening basis suggest that corn inventories are getting increasingly tight. The report of planted acreage may show some significant loss of total planted acreage relative to March intentions, he said.
“The largest decline is expected for corn acreage,” he said. “While crop prices are high and have strengthened since mid-May, the response seems muted given the magnitude of production risk in the U.S. and other parts of the world. This is particularly true for corn.”
Good said it’s surprising that prices for the 2011 corn crop have not strengthened even more in an attempt to make corn planting as attractive as possible compared to planting other crops or leaving acreage idle.