USDA Expected to Project Record Soy Plantings
June 28 2017 - 9:39PM
Dow Jones News
By Jesse Newman
CHICAGO -- U.S. farmers are expected to sow more soybeans than
ever this year, according to analysts polled by The Wall Street
Journal.
The U.S. Department of Agriculture will issue two key reports on
Friday, estimating planted acreage and grain stockpiles as concerns
over weather and crop conditions dog the start of the nation's
growing season.
Analysts expect the USDA to say U.S. farmers planted a record
89.946 million acres with soybeans this year, up nearly 8% from
2016, according to the poll. That figure would mark an increase
from the government's previous estimate for 89.482 million soybean
acres released in March.
Farm economics are driving a shift from corn and wheat to
soybeans this year, with farmers favoring the oilseeds because they
cost less to produce than corn and enjoy strong demand from foreign
importers like China. Such calculations are key as U.S. growers
navigate a multiyear slump in the farm sector that has battered
crop prices and incomes.
Expectations that soybean area will increase slightly from the
USDA's initial report on planting intentions in March come after
excess rainfall this spring prevented or delayed corn planting in
parts of the Farm Belt. That likely prompted farmers to switch more
fields from corn to soybeans, analysts say.
The USDA's report will be a first step to settling debates over
"what are the real corn acres," said Don Roose, president of U.S.
Commodities, a brokerage in West Des Moines, Iowa.
The USDA likely will peg planted corn acres at 89.82 million,
down nearly 5% from last year, according to the poll. That would be
a 0.2% decline from the government's March estimate. All-wheat
acreage likely will be estimated at 46.045 million acres, down 8%
from 2016, the poll showed.
The USDA is scheduled to release its acreage report at noon EDT
on Friday.
In a separate report, the government will also estimate grain
stockpiles as of June 1, which analysts expect to show growing crop
inventories thanks to bumper harvests last year.
Analysts anticipate federal forecasters will peg U.S. corn
stockpiles at the beginning of the month at 5.16 billion bushels, a
nearly 10% increase from the same date last year.
Soybean inventories on hand at the start of June will likely
come in at 981 million bushels, up more than 12% from a year ago,
analysts indicated.
Wheat reserves on June 1 are seen at 1.154 billion bushels, an
18% increase from last year.
Write to Jesse Newman at jesse.newman@wsj.com
(END) Dow Jones Newswires
June 28, 2017 21:24 ET (01:24 GMT)
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