Markets Fret Over U.S. Seeding Intentions

CHICAGO - Apr 3/06 - SNS -- International agricultural commodity markets were relatively quiet over the weekend, with little business reported, though some government buyers announced future tenders for rice and sugar.

Major grain and oilseed markets were still trying to sort out what they really expect to happen to seeded area in the United States this year after Friday's "shocking" USDA seeding intentions report.

The intentions were surprisingly bullish for corn and wheat and "shockingly bearish" for soybeans. Traders now wonder how growers will respond to the post report price reaction as markets work to prevent such a large slide in corn seedings and moderate the increase in soybeans.

Based on a survey of 87,000 farmers, the USDA said soybean area would likely leap to a record 76.89 million acres from 72.1 million last year. Intended corn area was pegged at 78.0 million acres, down 5% from 2005 and 4% below 2004. All wheat planted area is expected to total 57.1 million acres in the United States this year, down slightly from 2005, with increases in winter wheat offset by declines in durum and other spring.

Subscribers can read the full text of the article by Clicking here