A new report from Informa Economics has predicated there will be fewer corn and wheat acres and more soybean acres in the coming years. Corn acres can be expected to drop to 90.9 million acres, and wheat to 48.9 million acres.
On the other hand, soybean acres are expected to hit a record high of 88.4 million acres.
China seems to be taking note, announcing they will increase their soybean acres over the next five years, and they will be halt sending corn in stockpiles because they want people to buy what is currently being harvested.
On U.S. Farm Report over the weekend, Mike North of Commodity Risk Management Group said any time China releases information, it “has to be read with a degree of scrutiny.”
He said China’s middle class is growing, which in turn leads to a growing spending power. The country’s growing hog industry and poultry operations need more protein, requiring more protein.
“The reality is they don’t want to ultimately try to force their hand on corn when they have an opportunity to buy 10-year lows,” said North.
Watch North and Tommy Grisafi of Advance Trading, Inc. on U.S. Farm Report discussing cattle markets, danger in the pork industry, and a glut of dairy above.