A lot of farmers may be switching to soybeans because of the high cost of growing corn. USDA’s first estimate for corn acreage in 2015 came in at 89.2 million acres, down about 1.5 million from last year.
University of Missouri Extension agricultural business specialist David Reinbott told the 2015 MU Spring Ag Marketing Outlook Conference that farmers might switch another 500,000 to 1 million acres from corn to soybeans if fields aren’t dry enough for planting in the next few weeks.
The USDA pegged soybean planting at 84.6 million acres, up about a million acres from last year. That estimate may be on the low side, Reinbott said.
Based on trend-line yields and current use rates, ending stocks could put soybean prices under $10, he said. Prices could go even lower if farmers switch more acres from corn to soybeans, he added.
Reinbott says it looks like there will be a good-sized corn and soybean crop in Brazil and Argentina, which also will push prices down.