Thus, the ton of soybeans fell 2.7% to US$595.33 per ton. The United States Department of Agriculture (USDA) confirmed that producers estimate that they will plant the largest soybean acreage in their history, as the high input costs associated with growing corn and wheat made the oilseed more attractive.
As for corn and wheat, they said they plan to reduce their plantings, even as domestic wheat supplies are at their lowest level in 14 years and demand for both grains is rising after Russia’s invasion of Ukraine disrupted shipments of key providers.
Thus, wheat rose 0.2% to US$378.36 per ton. While corn grows 1.3% to US$294.38 per ton.
“When we saw the (fertilizer) price really skyrocket starting last fall, growers looked for alternatives,” said Brian Basting, an analyst at Advance Trading. “They were also looking at the attractive price of oilseeds,” he stated.
The data exacerbates concerns about wheat shortages in importing nations and rising food inflation.
The USDA said in its annual crop outlook report that farmers expect to plant 89.49 billion acres of corn, up from 93.357 million in 2021. The acreage projection was below the low end of estimates in a Reuters poll.
Soybean plantings increased to 90.955 million acres from 87.195 million and spring wheat plantings decreased 1.9% to 11.2 billion acres. The United States plants most of its wheat in the fall.
“We’re going to need every acre that the USDA reported this year to meet demand,” said Terry Reilly, senior commodity analyst at Futures International.
US wheat stocks as of March 1 stood at 1.025 million bushels, down 21.8% from a year earlier and the lowest volume for the period since 2008.
Corn stocks were pegged at 7.85 billion bushels and soybean stocks at 1.931 million bushels, the USDA said.
Source: Ambito
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