Key Planted Acreage Numbers Changing

USDA will release its planted acreage report next Tuesday (June 30). Seeing a fairly big switch from corn to soybean acres this spring - Informa Economics is estimating planted corn acreage will be 83.1-million - 1.9-million less than USDA's current estimate - and 800-thousand below Informa's May estimate. For soybeans - Informa's 78.8-million acre estimate is up 500-thousand acres from the May estimate - and 2.8-million acres above USDA's current forecast. Informa's spring wheat acreage estimate is 100-thousand acres more than USDA's estimate.

Meanwhile - Allendale estimates soybean acres will be up almost 2.5-million acres from USDA's March planting intentions - while corn acres will decline 211-thousand acres. Allendale's estimates are at 84.7-million acres for corn - and 78.4 million acres for soybeans. Allendale estimates a 302-thousand acre decline in wheat acres from the March intentions.

As for farm income - IHS Global Insight economist John Kruse says the outlook for 2009 has deteriorated significantly because of lower commodity prices and cash receipts. Total cash receipts are now expected to drop nine-percent from last year - with the reduction split evenly between the crop and livestock sectors. Last year’s income level was by far a record - so historically speaking - this year's farm cash receipts will still be relatively high.