Report of the USDA Makes Plunge Market of Chicago

The futures market in Chicago has seen a sharp decline Tuesday. Consequences of the observations contained in the report of the U.S. Department of Agriculture (USDA) concerning the distribution of cultivated areas. Which states that American farmers have planted surfaces wider than analysts expected.

Main "victim" means the price of corn and wheat, and to a lesser extent the course of soybeans.

Contrary to what was expected, the USDA reported that the cultivated areas of corn, soybeans, wheat and cotton would be higher by 4.9 million acres (about 2 million hectares).

According to the report of the Ministry, the U.S. should plant more corn (1%) and soybean (2%) than last year.

Corn is expected to increase by 800,000 hectares compared to first estimates released in March, reaching its second highest level since 1946 to 35.22 million hectares.

An "evil" (for course ..) never alone, especially the mild weather of the past week has increased the quality of the harvest.

Regarding wheat, the United States are expected to sow less than last year (-5%), but new estimates are higher than those established in a preliminary report.

In its first estimates in March, the USDA had predicted a decline of 7% for areas planted in wheat and 1% for those planted in corn.

The report was however relatively neutral for soybeans, stocks should remain limited, a situation likely to support prices for several weeks. The soybean is planted on 30 against 31.35 Mha 64 Mha planted in 2008.

Note also that in a second report, the USDA reported that U.S. inventories of corn and wheat had increased by 6% and 118%, while soybean had declined by 12% on 1 June 2009 annual value slippery.

The contract for corn for December delivery plunged 30 cents, the maximum at 3.6725 dollars a bushel (about 25 kg). The contract maturing in September wheat fell 17 cents to 5.4075 dollars. The contract of soybeans mature in November lost 2.50 cents to 9.81 dollars a bushel.

Remember, the United States is the world's leading producers of corn and soybeans and wheat exporters.