Pet Forum

The USDA crop report was released this morning. As expected, American farmers planted less acres of corn this year, but more acres of soybeans. Less corn was planted, and will be harvested, primarily due to the flooding across the U.S. This will lead to continuing high prices for corn and other products that use it.

How will this USDA crop report effect the futures and commodity markets? Probably not very much. Most investors have already expected this information for quite a while, so there really shouldn't be much of a change in the markets today.

The government says farmers will harvest nearly nine percent fewer acres of corn than last year because the flooding has damaged the crop. That probably means continued high corn prices, which likely will drive up some food prices. Planted soybean acres will increase 17% from last year to 74.5 million acres, the third largest on record. The USDA says the planted soybean acres are expected to increase in all states.

This really does not suprise me, soy is used in so many products these days and now with green fuels being developed from soy.

I think its however important to continue to rotate crops.