Cash Strategist
Author
Published
3/1/2021
We are starting to see more market interest in the upcoming planting season in the United States. This comes with the start of acreage estimates being released.
Early estimates for corn are calling for 92 million acres in plantings, nearly the same number as last year. Soybean acres are forecast to total 90 million, which would be an increase of 8.7 million from this year. Wheat plantings in the United States are forecast at 45 million, which would also be a slight increase from 2020.
The question in the market is where these additional acres will originate from. For one, we are expected to see 1.2 million acres exit the Conservation Reserve Program this year. Analysts also expect to see 6.3 million acres planted this year that had prevent-plant insurance taken on them a year ago.
The trade is questioning the balance sheet numbers that were released in the Ag Outlook Forum. Even with a considerable increase in plantings of both corn and soybeans, ending stocks are forecast to remain tight.
If the...
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