Wheat acres are likely to total 58 million, far surpassing the 41.2 million market estimate.
Still, grain inventories will remain extremely tight, more than offsetting a larger-than-expected harvest in 2011, according to the USDA.
The higher corn plantings however could bite into oilseed supply. The USDA predicts farmers will plant 76.6 million acres of soybeans, below the market forecast of 77 million, according to Agriculture.com.
Agriculture and fertilizer stocks got a lift from the news as well.Agricultural commodities transporter Archer Daniels Midland (ADM) rose 1.1% to $36.32, Agrium (AGU) gained 3.3% to $92.55, CF Industries (CF) advanced 4% to $137.87 and Potash Corp. (POT) rose 1.5% to $59.07.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV