When USDA releases its highly anticipated Acreage report on June 30, Standard Grain’s Joe Vaclavik expects to see a big jump in soybean acreage compared to the March Prospective Plantings report.
“I think soybean acres are going to be 85 million (acres) or higher,” says Vaclavik. “I think we’ve seen a $3 rally since that survey was taken, and I think it’s going to have major consequences with regard to acreage.”
His numbers are more aggressive than Informa Economics, which this week released its acreage projections of 92.566 million corn acres and 83.761 million soybean acres.
Compared to the March report, Informa’s estimates represent a drop of 1 million acres in corn and a gain of 1.5 million acres in soybeans.
Given the extended rally for beans, though, Vaclavik expects even higher numbers. “There’s one major crop here that makes money for every farmer that can plant it, and that’s soybeans. Corn is just getting back to the point where farmers can break even,” he says. “I would think that every farmer who had the ability to switch into beans did it, and I think we’ll see that on June 30.”