Corn and soybean futures saw their strongest sessions in 5 years following yesterday’s USDA Planted Acreage and Grain Stocks reports. The reports showed that domestic stockpiles of both crops were lower than expected as was planted acreage.

Soybean futures for July soared more than 5% at one stage to $10.57 ½ a bushel, the highest for a spot contract since mid-January, according to The best-traded, new crop November contract also leaped 5% at its peak to a near 6-month high of $10.29 a bushel.

“Corn futures for July rocketed 6.1% at one stage to $4.06 ½ a bushel, also the highest for a spot contract since early January.

The higher volume, new crop December jumped 5.5% to $4.24 ½ a bushel to repeat the same feat,” says

USDA estimates that June 1 national inventories of corn were 4.45 billion bushels, below the consensus estimate of 4.56 billion. For soybeans, USDA estimated June 1 inventories at 626 million bushels, vs. the consensus expectation of 670 million bushels.

“While the recent weather-related positives were badly needed after a string of negative headlines … Overall, we view today's report as a relatively positive data point for Deere, CNHI and AGCO,” Michael Shlisky, analyst for Global Hunter Securities, said in a note to investors.

“The large ag equipment stocks in our coverage have reacted positively in recent weeks to heavy rainfall in the Central U.S. in June and the resulting potential for flooded acres and lower yields, though July and August weather have been found to be the most significant determinant of yield.”