The trade is starting to focus more on global production estimates and needs. Given current stocks and carryout estimates, it is believed U.S. farmers will need to plant 10 million more acres of corn, soybeans and wheat this coming year to satisfy demand. The majority of these acres will be needed in the soy complex as ending stocks on that commodity are forecast to decline to a minimal volume.
The question is where these acres may come from. According to USDA data, U.S. farmers planted 91 million corn, 83.1 million soybean and 44.3 million wheat acres last year. Early estimates indicate these plantings will expand but may still not reach the needed amount.
The problem is corn and wheat cannot afford to lose any acres to elevate plantings of soybeans or they may face their own shortages in the future.
One place the United States may see acres come from is the Conservation Reserve Program (CRP). At the present time, there is a...