USDA's estimate of acreage under wheat and corn in the United States exceeded expectations
the Department of agriculture released revised data on the sowing areas of grain crops harvest in 2016. Area under wheat and corn were much higher expectations of market participants and the preliminary forecasts, which were reported before the sowing of spring crops.
- Wheat sown 50,816 million acres vs last year 54,644 thousand acres, whereas in March the forecast was 49,559 million acres.
- Corn sown 94,148 million acres vs last year's 87,999 million acres, whereas in March the forecast was 93,601 million acres.
experts had been expecting a reduction of the acreage under maize due to the increase of the area under the more profitable soybeans. However, according to the President of Global Commodity Analytics, farmers are not too quick to react to changing market conditions. Another factor of the attractiveness of corn for the farmers is the low cost of fertilizers. Corn typically has higher yields than soy or wheat. So after the price of fertilizers began to decrease, the producers did not neglect the opportunity to obtain a higher yield.