There are two main points of interest in today’s market: the U.S. planting season and the South American harvest.
When it comes to the U.S. planting season, most attention is on acreage. We have seen several estimates for elevated acres this year for corn, soybeans and wheat. This is from the fact nearly all are expecting a decrease in prevent plant acres in the U.S.
Last year, prevent plant trimmed U.S. crops by 10 million acres. Thoughts are a good portion of these acres will come back into production this year and be seeded to soybeans given the current market structure. Most indications point to a 7 million acre increase in soybean seedings for this reason .
There are also thoughts the United States will pick up acres from the Conservation Reserve Program this year, but these tend to be less productive than acres that are continually farmed.
Another area where the U.S. may see elevated soybean acres is from an elevated interest in double cropping. There are thoughts that as...