The USDA also reported that 77.48 million acres of soybeans have been planted, 1.46 million acres more than the March 31 estimate. As for spring wheat, 13.77 million acres are planted which is .47 million acres more than the prior estimate.

Grain prices were sharply lower today (corn down almost 8% and triggered the daily trading limit of 30 cents) as the planted acres forecast was considerably higher than the consensus estimate and recent weather conditions in the Midwest have been favorable. Investors had anticipated a significant reduction in the corn crop acreage due to the wet spring, but the USDA said weather in late May allowed farmers to make swift planting progress.

Despite the large increase in planted acres, supplies will still be constrained. We expect the market to now be focused on yields for the remainder of the summer. It is one thing to get the corn in the ground, another to grow it and get it in the bins come Fall.

- Colvin