USDA on Tuesday estimated U.S. farmers planted 88.9 million acres of corn, the smallest area since 2010, and 85.14 million of soybeans, which would be the largest on record.
Both of those numbers were under average forecasts in a Reuters pre-report survey.
Also on Tuesday, USDA put quarterly corn stocks at 4.45 billion bushels and soybeans at 625.4 million. Those numbers were under the averages of trade forecasts.
Chicago corn and soybean futures sped higher after the reports, with both July and September corn contracts up about 20 cents shortly after. In soybeans, July soybeans briefly rose 50 cents before settling back to trade up 41. August soybeans were up about 37 cents.
Chicago's September soft red winter wheat futures were up about 12 cents and Kansas City's September hard red winter up about 10 cents. September spring wheat is up ½ cent at midday on Tuesday.
"USDA's June 1 soybean stocks estimate is the earth shattering number today. It implies the 2014 crop was 100 million bushels less than the official estimate put out by the agency in January," said Bryce Knorr, Farm Futures senior grain market analyst. "With 5 million acres of soybeans still unplanted, the market is putting some risk premium back into both old and new crop prices."
USDA's acreage estimate doesn't appear to reflect the reality that farmers faced due to heavy June rains because the data was collected in the first two weeks of June, said Knorr.
USDA said it will resurvey farmers in a number of states to assess the rain's impact on planting. That data should be available in its August report.
"The corn numbers are also friendly. The stocks data suggests greater third quarter feed usage than we expected and our estimate was on the low side of trade guesses," said Knorr. "The big increase in hog numbers appears to have more than made up for any losses caused by avian influenza."
June 30 USDA report data >>
All wheat acreage came in at 56.08 million, a little more than the 55.5 million average trade forecast and up from USDA's March number of 55.37 million. USDA put winter wheat at 40.62 million acres, spring wheat at 13.5 million and durum at 1.95 million. The winter wheat is down from USDA's March number, while spring wheat and durum are higher.
Wheat stocks of 752.6 million bushels topped all trade forecasts in a Reuters survey.
"The wheat data is bearish, with more leftover supplies of 2014 crop, likely due to lower feed usage," said Knorr. "Acreage is also a bit unfriendly. But if corn and beans keep rallying, wheat will follow for now, with soft wheat supplies tightening on bad weather in the Pacific Northwest and eastern Midwest."Dowload the full USDA June 30 quarterly stocks report on the USDA website.
USDA quarterly stocks report for June 30: