Analysts Disagrees With USDA Corn Planting Numbers
USDA corn planting estimates are causing markets to move lower, but a grain industry analyst believes USDA’s numbers are a pipe dream of sorts. “It just doesn’t make sense, I’ve got to wonder how USDA came up with an increase in acres from March planting intentions, when we’ve got big holes in production because of weather,” said National Farmers Organization’s Senior Grain Marketing Analyst, Pete Lorenz.
There’s industry talk that 14 grain-producing states may be re-surveyed. “It costs American farmers $3 billion alone on the day the report was released,” Lorenz says. “If USDA suspects it doesn’t have accurate numbers or the survey isn’t really complete, releasing the report can cause real economic harm,” Lorenz emphasized.
USDA estimates increased planted corn acres in Arizona, Nevada, North Dakota and Oregon, which are not big corn production states, relatively speaking. Lorenz says there were more planted acres washed out in Illinois, for example than total corn raised in Arizona, Nevada and Oregon, combined.