LOS ANGELES, CA (Catholic Online) - In a separate report, the Agriculture Department says that supplies in storage as of March 1 were smaller than expected, making a big crop very important.

"Going forward, it's going to be all about the planting weather," Don Roose, president of U.S. Commodities says.

Corn, wheat and soybean futures rose strongly on the surprisingly short grain stocks. Corn for delivery in May went "limit up," rising by the maximum amount allowed in a day of 40 cents. The climb of 6.6 percent to $6.44 a bushel was the biggest gain for corn since Oct 11.

Soybeans were also up 3 percent, to a six-month high of $14.02 a bushel. Wheat was up nearly 8 percent, the biggest increase since early October.

The farm sector is enjoying a boom that dates from 2006 as food demand rose worldwide and bio-fuels helped inspire crop production. Farm income is set at record highs, farmers have updated their tillage equipment and built more storage bins, making business for equipment makers like Deere & Co and AGCO Corp, seed companies such as Monsanto Co, bin manufacturers such as Brock Grain Systems, owned by Berkshire Hathaway, and processors such as Archer-Daniels-Midland Co.

The rise in corn acres and decrease in soy acres is particularly positive for fertilizer producer CF Industries. The company is weighted more heavily in the production of nitrogen fertilizer need to grow corn, said Jeff Stafford, equity analyst for Morningstar.

Soybeans don't require nitrogen fertilizer. CF Industries was up 2.2 percent at 185.5, while rival fertilizer maker Mosaic was up just 0.3 percent at 55.43. Bunge Ltd, the world's top oilseed processor, could take a hit from the decline in soy plantings, Stafford said.

Grain companies could also make more money by transporting increased volumes of crops around the world. "For a grain trader like Bunge, they make more money from the higher volumes of food that are shipped," he said.

Another year of full output is on the horizon. USDA estimates growers will plant the largest area to the eight major field crops, corn, wheat, rice, cotton, soybeans, sorghum, barley and oats since 1998 and up 2 percent from 2011.

Farmers said they would expand corn planting by 4 percent from 2011, which exceeded analyst expectations or 94.72 million acres. Iowa, the No. 1 corn state, would plant a record amount of land to corn.

"Acreage is expected to shift to corn," the USDA said. In many states, corn offers higher returns than competing crops.

© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.