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JUNE 30 USDA QUARTERLY STOCKS AND PROSPECTIVE PLANTINGS REPORT REACTION (PROVIDED BY: MINNEAPOLIS GRAIN EXCHANGE)

JUNE 30 USDA QUARTERLY STOCKS AND PROSPECTIVE PLANTINGS REPORT REACTION
 (PROVIDED BY: MINNEAPOLIS GRAIN EXCHANGE)
 MINNEAPOLIS, June 30 /PRNewswire/ -- After the close of futures this afternoon, the United States Department of Agriculture released its prospective plantings and quarterly grain stocks report. The USDA reported US ending stocks of soybeans totalled 696 million bushels, corn 2.739 billion bushels and wheat 472 million bushels as of June 1. The average analysts' estimate for wheat stocks was 411 million.
 Planted acreage was also released today. Soybeans came in at 59.030 million and corn was reported at 79.335 acres planted. Other spring wheat plantings were 18.758 million and durum was 2.472 million acres while all wheat totalled 72.237 million acres planted.
 Minneapolis Grain Exchange futures traders reaction:
 David Baxter, Linnco Futures, 612-333-6231
 The largest impact on our market following tonight's report should be felt on the new crop. An acreage increase of the size that we saw tonight combined with the favorable growing conditions should put added pressure on our new crop contracts. Our old crop contracts should remain relatively firm (vs. new crop) due to the dynamic nearby fundamentals (basis each +70 July). In addition Minneapolis will probably loose to Kansas City/Chicago as we try to compete for new crop business. The only problem I see with sharply lower prices in the near term is a lack of follow through. The large inverse in old crop vs. new crop will probably limit the amount of new crop sales by the producer.
 Helen Pound, Goldenberg, Hehmeyer & Co. 612-332-6473
 Today's USDA Quarterly Stocks report and Prospective Plantings report showed considerable increases in wheat supplies. Wheat stocks as of June 1 of 472 million bushels were well above the range of trader's pre-report estimates of 330 to 463 million bushels.
 Planted acreage for both winter and spring wheat also increased. Winter wheat planted acreage increased 791,000 acres - with California up 300,000 acres and Kansas up 200,000 acres. The largest acreage increase came in spring wheat - up 1,522,000 acres. North Dakota spring wheat acres increased 600,000 acres.
 These surprising changes in the supply/demand balances for wheat should press prices lower and widen out carries. Expect to see futures open down 2 - 5 cents Wednesday morning.
 Wes Oja, Country Hedging 612-641-6502
 Spring Wheat acres came out above the high end of the price range at 18.758 million acres. Given harvested acres at 18.103 and a yield of 32 bushels/acre, we are looking at about a 580 million bushel spring wheat crop, which would be the largest spring wheat crop in history. This will probably mean more intermarket spreading with MGE the short leg.
 On the intermarket spreads, expect the MGE Sept./Dec. spread to move out toward a dime carry.
 -0- 6/30/92
 /CONTACT: Colleen Smith of USDA, 612-388-6212/ CO: Minneapolis Grain Exchange ST: Minnesota IN: FIN SU: ECO


LD-AH -- NY099 -- 5415 06/30/92 19:09 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
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