Strong purchases from China may lead to more U.S. soy, corn acreage
The overnight session paused just moments ago. Corn is up more than 8 cents to 542'6. Soybeans are over a nickel higher at 1358'6, and wheat is also higher at 654.
Those numbers are all supported by continued strong demand from China, and what a week it has been for purchases, with even more overnight.
China added more than 2 million tons of corn to the balance sheet for nearly 6 million on the week. Other large purchases include 1.7 million tons Thursday and 1.4 million earlier this week.
China also made its largest U.S. ethanol purchase ever this week, 200 million gallons.
All of that leads to increased potential for more crop acreage this year. USDA’s chief economist says that farmers will likely expand soy and corn acreage.
The department’s original projection was for slightly lower acreage this year. It will update that forecast next month. They say that longer-term prospects for expanding U.S. soy would be capped by limited land availability and crop rotation needs.