OREANDA-NEWS. February 20, 2015. US grain and soybean futures jumped on Thursday after the Agriculture Department projected farmers will plant fewer acres than some traders expected in response to falling prices.

The US Department of Agriculture, in data released at an annual Agricultural Outlook conference, projected 2015-16 soybean plantings at 83.5 million acres, down slightly from 83.7 million in 2014-15. The government estimated US corn plantings at 89 million acres, down from 90.6 million in 2014-15.

Traders had widely been expecting farmers to increase soybean plantings in an attempt to maximize earnings in the face of a weak corn market.

"Surprisingly, soybean planted acres are forecast to decline," JP Morgan analyst Ann Duignan said. "This forecast is relatively bullish for soybean futures prices, which have been depressed in recent weeks amid a constant news flow of oversupply across major producing regions."

Chicago Board of Trade March soybeans gained 1.6 percent to \\$10.12 a bushel by 10:55 a.m. CST (1655 GMT), recovering ground after falling 1.2 percent on Wednesday. CBOT March corn climbed 1.5 percent to \\$3.89-1/2 a bushel.

March wheat futures rose 1.6 percent to \\$5.36 after falling more than 1 percent on Wednesday.

The USDA forecast 2015-16 all-wheat plantings at 55.5 million acres, down from 56.8 million in 2014-15.

The planting estimates are not set in stone because farmers can adjust their plans based on changes in weather and prices. However, "in a market that is starved for fresh news, they are getting a reaction today," said Karl Setzer, risk management team leader for MaxYield Cooperative in Iowa.

Wheat prices advanced as traders awaited the results of a tender issued by top importer Egypt on Wednesday. Earlier on Wednesday, Egypt cancelled a tender seeking wheat offers only from the United States, citing high prices.

Egypt's trade ministry has extended for six months a decision to allow imported wheat to have moisture levels of up to 13.5 percent, a move seen as enabling French grain to remain in the running for future purchases.