The editors at AgWeb.com are looking at experts’ projections for a variety of commodities in 2020 to help you succeed and be profitable in the coming year. Here’s a look at what analysts are expecting for the upcoming growing season.
Stock, Trade Uncertainty Impact Corn Optimism in 2020
More corn, fewer soybeans. More soybeans, fewer corn acres … or no change at all. The annual crop mix decision isn’t getting any easier. Does another year of the same market challenges and talk of more corn acres impact your decisions?
“The general expectation is unplanted acres from 2019 will get planted in 2020 and 5 million will go to corn and the other 10 million to soybeans,” says Arlan Suderman, chief commodities economist for INTL FCStone. “That puts corn at around 95 million acres—a range I think is far more likely than the 100 million we’ve heard.”
Corn’s stocks-to-use ratio makes the crop seem more favorable than soybeans, but that doesn’t necessarily mean the market is creating real demand incentive to grow the golden grain. Read more.
Fourth-Largest Soybean Crop Projected For 2020. What About Prices?
Look for U.S. farmers to plant a large soybean crop next spring. In fact, USDA pegs the 2020 crop at 84 million acres, which would make it the fourth-largest soybean crop on record.
Todd Hubbs says the number of soybean acres planted could total even more—closer to 85.4 million. His forecast is based on current market prices for soybeans, the outlook for other crops—including corn, cotton, wheat and small grains—rotational practices and various economic models. Read more.
Could Wheat Acres Hit a 110-Year Low in 2020?
For the past two years, wheat acres have dipped to a 100-year low. For 2020, acres could challenge the 110-year low. The reason for the decline is easy to spot.
“Prices are poor, and profit is non-existent for some farmers,” says Kim Anderson, Oklahoma State University Extension economist.
In 2019, all wheat acres totaled 45.2 million, which is a 5% decline from 2018. Wheat acres have been on a steady decline in the U.S. for the past decade. For instance, in 2008, all wheat acres equaled 65 million. Read more.
Cotton Acreage Plunge in 2020?
How deep a dip for cotton acreage in 2020? With producers saddled by anemic prices and the ongoing U.S.-China trade dispute, a cotton cut up to 3 million acres is a possibility.
Despite cotton reaching almost 14 million planted acres in 2019 (2.7% less than 2018 acreage), the white blanket may not cover 11 million acres in 2020. Two leading cotton analysts offer perspective on major 2020 production issues, potential acreage and market wild cards. Read more.
Hay Acres on the Rise and Fall?
Wild weather patterns took a toll on the 2019 hay season causing the nation’s hay stock to reach its lowest level since 2012 and quality to be “hit” or “miss.” Looking to 2020, regional supply and demand will continue to be the driving force behind the swing in hay acres and prices. Read more.
Plan Now For Buying Inputs
Now is the time to lock in input prices. “When it comes to finding savings, look first at who you work with,” says David Widmar, economist at Ag Economic Insights, as suppliers are partners who can clue you in on deals. Read more.
More stories from the 2020 Outlook series: