Closing Market Report- 3/31/21- Limit Higher Moves in Grains After Surprising USDA Numbers

Several corn and soybean contracts, both old crop and new , closed up their daily limits Wednesday after USDA estimated lower-than-expected corn and soybean plantings for 2021. All three U.S. wheats were also higher but got no direct help from Wednesday’s USDA reports. Before the release of USDA’s March 1 Grain Stocks and Prospective Planting reports, much of the focus was on March 1 corn and soybean stocks. Following the release of the reports, the focus quickly shifted to the planting intentions. With the highest prices for both commodities at six- to seven-year highs, Dow Jones’ pre-report estimates expected much higher seeding than what the report suggested. Corn planting, expected to be 93.1 million acres (ma), instead came out 2 ma less, while soybean intentions were a good 2.4 ma under the average pre-report estimate.

Meantime, livestock trade was mixed to lower especially in feeder cattle. That market took a bit of a hit with the sharp rise in corn futures. Overall, it could have been worse in livestock trade on Wednesday.

Farm and Ranch Director Jesse Allen has the closing report:

You can also listen to Market Talk with Jesse Allen and Mike Zuzolo of Global Commodity Analytics for a more in-depth recap of the USDA numbers and more: