U.S. Soybeans Supplies Likely to Shrink

Driving 2020 Decisions
Soybean photos from MI Soybean College 2014. ( Aimee Cope )

USDA says 2019 planting is wrapping up quickly. Sam Hudson with Cornbelt Marketing tells AgDay's Clinton Griffiths the impact of this season will carry through to next year. 

"I think one of the interesting aspects is that we've been sitting on so many big supplies," says Hudson.  "Tell me where are the 80 or 90 bushels [per acre] beans going to be this year?" 

Hudson says losing a few million acres to prevent plant and pulling back the top end yields could shave a lot off of 2019 production. 

"Even if we did that, you still have to cut some demand along the way," says Hudson. "When you lose supply a trade wars matter a lot less because there's nothing to war over."

Hudson says African Swine Fever will do just that and he anticipates it being a big factor for 2020 planting decisions.

"If we reduce all the supplies in a dramatic way at a time where demand had just been throttled, by the time we realized what that actual final outcome is will we have time to produce another crop?" asks Hudson. 

Hudson says he expects that scenario to drive acres to corn in 2020.

Hear his full marketing thoughts and suggestions in the video.

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