GRAIN REPORTS IMPROVE U.S. FARM OUTLOOK-ANALYSTS The U.S. grain planting intentions and stocks reports bear optimistic news for U.S agriculture, a grain analyst on a Chicago Board of Trade panel said. The decline in intended soybean acreage and lower stocks are "the first report we've had for a long time that shows any optimism for anybody," said John "Bud" Frazier, grain analyst and executive vice president for Balfour MacLaine, Inc. "I'm really excited about it," Frazier said. The U.S. Department of Agriculture said farmers intend to plant 67.6 mln acres of corn, down from 76.7 mln planted last year, and 56.8 mln acres of soybeans, down from 61.5 mln. The report showed March 1 stocks of 1.4 billion bushels of soybeans, 8.3 billion bushels of corn, and 2.3 billion bushels of wheat, all below trade guesses. Frazier was joined by Susan Hackmann, senior grain analyst with AgriAnalysis, and Mark Meyer, a grain analyst with Shearson Lehman Brothers, Inc., on a Chicago Board of Trade panel to discuss the reports. Frazier said the stocks reports in particular were friendly for the market, and soybean prices would jump three to five cents a bushel "if the bell rang right now." "We're getting our disappearance up. We have less (corn and soybeans) than we thought we had," he said, noting that hog and poultry production is up. "We're seeing low prices generate some interest in demand," said Meyer, adding that feed use was up 13 pct last quarter and 15 pct in the preceding quarter. However, Hackmann said production could continue to exceed consumption. She noted that most of the reductions in soybean acres came in southeastern states, where yields are usually low. "We have the potential for record breaking soybean yields this year, (which) will temper the enthusiasm on tomorrow's opening," she said. Hackmann said record corn yields also are possible, and the crop could reach 7.1 billion bushels, which would be down from last year's 8.25 billion bushels. "We'll need very good disappearance next year to reduce stocks," she said. The USDA estimated disappearance last year at 6.7 billion bushels. Hackmann said the stocks report was positive for the long term, "But we still have a long way to go to bring stocks down to where we could start rebuilding prices." Frazier also cautioned that the soybean acreage report could prompt farmers to change their plans and plant more soybeans. The panelists agreed that the reports should discourage talk of revising the 1985 farm bill. "There seems to be no desire ... to change the farm law we're working under today, and this report should reinforce that," Frazier said. "We are seeing the program beginning to work," said Meyer.