USDA delivered a shocker to the marketplace with its Prospective Plantings Report. “Oh boy, we’re going to have another year of some very exciting markets,” exclaimed Ted Seifried, chief market strategist, Zaner Ag Hedge. Corn acres are estimated at 91.1 million acres. That’s up only 340,000 acres from last year, but it is more than 2 million acres below the average trade guess. Soybean acres are forecast at 87.6 million acres. The soybean number is up 4.5 million acres from last year, but down 2.4 million acres from the average trade estimate. “Unless we see a significant rationing of demand for new crop soybeans we have to have well better than trendline yields in order to have a balance sheet where we don’t run out of soybeans in a hurry.”
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.