By Doug Tenney, Leist Mercantile
It’s hard to fathom spring planting season is just around the corner, particularly when last fall’s wet weather pattern looks to continue through spring. Many had expected to see some price rally for corn, easing their decision toward more corn acres. Crop budgets remain very tight with many seeing negative profits for corn and soybeans. Troublesome to those budgets are soybeans losing more per acre than corn in spite of corn input costs exceeding those for soybeans.
Last year the United States planted 89 million acres to both corn and soybeans. This year corn acres could likely climb to at least 92 million acres. Soybean acres could decline at least 3 million acres. Therein remains a huge problem. The soybean acres decline is likely way too small, with soybean ending stocks of 925 million bushels. We will be gain much more clarity (be much smarter) with the release of the March 29 USDA Planting Intentions Report.