Floor Talk: 12 Million Acres Coming Out of CRP

(DTNAg) -- In the midst of the widespread selloff in commodities Monday, we're hearing some numbers bantered about regarding CRP.

It's being widely reported that USDA is close to announcing a decision to allow some acres out of the Conservation Reserve Program without the usual penalties, in response to intense pressure from the livestock industry for relief from high feed costs.

DTN's Man on the Floor at the CBOT Gary Wilhelmi said he's hearing talk that USDA will get 12 million acres out of CRP, and that those acres will be principally wheat acres.

All commodities are down to start the week, but there are still bullish factors lurking, Wilhelmi said, especially talk about yields.

Floor sources are saying soybeans are more vulnerable to reductions, but there's still 4 to 6 million acres of corn that's no more than 8 inches tall, so there could be serious yield loss there, as well.

Wilhelmi said one trader told him he expects Dec corn could lose another 30 cents beyond today's losses, then buyers will be back in. Whether that was a trader talking his own position remains to be seen, of course, but that's a sample of the Monday chatter.