USDA Annual Crop Report

The U.S. Department of Agriculture's (USDA) Annual March plantings Report was released on Monday, 3/31/08. According to Marketwatch.com, "The government's report on planting intentions by U.S. farmers is a closely watched indicator for how much grain the U.S. -- the largest exporter of many grains -- will supply. The information affects exchange prices and the bottom lines of ethanol makers, fertilizer manufacturers, hog farms and corn sweetener producers."

http://www.cnbc.com/id/23879013

My Main Takeways:
*CORN acreage is expected to FALL to 86 million acres this year, down 8 percent from last year's ethanol-fueled record (this seems bullish for higher corn prices relative to prior supply expectations)

*SOYBEANS are expected to hit 74.8 million acres, an 18 percent increase (this seems bearish for higher soybean prices relative to prior supply expectations)

*WHEAT plantings are expected to increase 6% to 63.8 million acres

*COTTON plantings will decrease 13% to 9.4 million acres (not sure of the ramifications here but 13% seems like a pretty hefty supply reduction)

Report CAVEAT --> "The Agriculture Department numbers only express intentions and are still subject to change depending on a variety of factors, particularly rain, which would be hardest on corn as it is the most weather-sensitive crop. A wet spring could lower corn yields, causing prices to surge."

Data Courtesy: CNBC.