U.S. farmers will reap two of their largest corn and soybean crops ever and sell them for the highest average prices since the commodity boom ended several years ago, said the government Wednesday in its first projections of the fall harvest. The USDA also said that global soybean king Brazil would increase its share of the world market at the expense of U.S. exports.
Large swaths of Iowa, Wisconsin, Illinois, Indiana, and Ohio are abnormally dry and most of Michigan is in moderate drought due to limited spring precipitation, said the weekly Drought Monitor on Thursday. Arid conditions covered 48 percent of the Midwest, the heart of U.S. corn and soybean production.
U.S. farmers will plant less corn and soybean land than expected this year, despite a surge in commodity prices, suggesting that tighter grain supplies will persist into 2022, said the USDA on Wednesday. Although with normal weather and yields, the corn and soybean harvests could be the second largest ever, they will not be quite as large as projected by traders and the government.
World wheat production will rise for the third year in a row, with growers harvesting a record-large crop this year, say forecasts from the UN Food and Agriculture Organization and the International Grains Council. While they differ slightly on how large the new crop, months away from harvest, will be, they agree Europe will be key.
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.
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.
World grain production will reach an all-time high of 2.23 billion tonnes, with record-setting wheat and corn harvests, said the International Grains Council on Thursday. The global inventory of all grains will rise for the first time in four years.
After looking at the latest USDA price projections for corn, wheat, and soybeans, and taking into account price patterns for the crops, five university economists say the Price Loss Coverage subsidy is a better choice for growers than the Agricultural Risk Coverage subsidy for corn and wheat grown this year.