U.S. farmers will respond to high commodity prices by harvesting their largest soybean crop ever and a corn crop that could tie the record set in 2016, projected USDA on Friday. Delivered to a hungry world recovering from the pandemic, the 2021 corn and soybean crops would fetch some of the highest farm-gate prices in years.
U.S. farm income will be a strong $111.4 billion this year, 20 percent above the 10-year average, thanks to a recovery in crop and livestock revenue and larger than usual federal payments, said the USDA. Higher market prices, particularly for corn, soybeans, cattle and hogs, and larger production were forecast to boost farm receipts by $20.4 billion from 2020's level.
Despite dry weather at the start of the planting season, Brazil is headed for its second record-setting soybean harvest in a row, said USDA analysts, who forecast the 2020/21 crop at 133 million metric tonnes, up nearly 6 percent from last year.
In the past year, the record-large U.S. soybean stockpile shrank by 42 percent, thanks to strong demand for the oilseed and the smallest crop since 2013, said the USDA on Wednesday. Nonetheless, the Sept. 1 inventory of 523 million bushels is the fourth largest since soybeans became a major U.S. crop in the 1940s.
One week after the Nov. 3 general election, Deputy Agriculture Secretary Steve Censky will start work for his former employer, the American Soybean Association (ASA) as its chief executive officer. Censky held that post for 21 years before joining the Trump administration in 2017.
Recent increases in market prices are making soybeans more attractive, and farmers will respond by expanding soybean acreage by nearly 5 percent in 2021 while holding steady on corn acreage, said Farm Futures on Wednesday.
The expected six-month review of the Sino-U.S. trade agreement failed to materialize on Saturday but President Trump expressed satisfaction with the increasing pace of farm export sales to China. During a news conference, Trump said, "China has been buying a lot of — a lot of things, and they're doing it to keep me happy but they're dreaming about Joe Biden."
U.S. farmers are looking at their largest corn crop ever and a near-record soybean harvest, with huge stockpiles of both crops persisting into fall 2021, said the USDA on Wednesday. Some 2.8 billion bushels of corn would remain in the bin when next year's crop is mature, the largest carry-over since the Reagan era.
With a rebound in U.S. production, the world soybean crop will be a record 364 million tonnes in 2020/21, up 8 percent from this season, said the International Grains Council on Thursday. Record-setting corn and wheat crops were also forecast for 2020/21.