Corn and soybean acres may soar, partly due to demand from China

The rough weather we have had over the last week makes it seem trivial to start predicting crop acreage this year, but speculation is going full steam ahead.

The last couple of years saw far above normal levels of prevent plant acreage. If that statistic returns to a normal level this year, USDA Chief Economist Seth Meyer says that there will be a lot more corn and soybeans going into the ground this spring.

“We’ll gain acres, just on that matter, let alone the fact that we have quite strong prices, which will also incentivize planting,” Meyer explains.

The current projection shows 182 million combined acres of corn and soybeans, which would be a record. However, Meyers admits as we have seen in recent years, the weather will have the final say.

The Phase One China trade agreement could be the reason for the premature speculation.

The Chief Ag Trade Negotiator for the Trump administration says that China’s total ag imports from global sources, not just the U.S., grew by more than $30 million dollars over the last two years.

He says it sets a theme for the next several months.

According to Gregg Doud, “If you look at what we’ve done in terms of exports here. In recent months, we’ve done extremely well to a point where we begin to have to have a conversation about what we have left in the bin here, and I think it remains to be seen, but before we get into our new crop supplies here, this thing could get pretty interesting and pretty volatile going forward.”

He says that demand from China would not just be limited to corn and soybeans and predicts that they will also want as much grain sorghum as they can get their hands on.


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