The initial look at 2020 U.S. corn, soybean and wheat acres from the USDA last week came out pretty much as the trade was expecting. 

For this coming year, the USDA is predicting plantings of 94 million corn acres compared to 89.7 million a year ago. Soybean acres are projected at 85 million, up from last year’s 76.1 million. Wheat acres are forecast to decrease a slight 200,000 for 45 million total. The main reason for the overall acreage increase was the return of last year’s unplanted acres. 

There are obviously many variables that will impact all of these numbers, with weather being the primary one. Acreage shifts will take place with any disruption to spring planting. We are already hearing of saturated soils in parts of the U.S., and the concern is that even normal spring rains will bring floods. 

Of course, demand will also be key in the balance sheet projections, with most interest focused on China. China is trying to...