Analyst: More Soybean Acres in 2020

11:27AM Jun 29, 2020
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USDA’s Acreage and Grain Stocks Reports have a history of producing strong market moves which usually set the price tone through the summer, reports Pro Farmer.

In its Prospective Plantings report, USDA said 97 million acres were planted. If realized, that number is up 8%, or 7.29 million acres, more than last year.

“We got off to a quick start planting corn,” says Ted Seifried, vice president of Zaner Ag Hedge. “Generally speaking, when we do that, we get close to or sometimes beat that intentions number. We really like to get corn planted and keep rolling on corn.”

However, Seifried believes that situation may not be the case for 2020.

“Look at the Dakotas,” says Seifried. “They’ve just had a struggle for over a year now.”

He also believes a lot of farmers switched over to plant soybeans.

“I see a shift from that 97 million acres down to about 94.5 million acres in corn,” says Seifried. “I see soybeans increasing to about 84.5 [million acres]. That would be a total of 179 million acres of row crops.”

Seifried’s estimate is down from the USDA Intentions number of 180.5 million acres total for corn and soybeans for 2020.

“That [180.5 million acres] would have been a record for row crops,” says Seifried. “It just didn’t feel like a year for that to happen, for me.”

USDA projected 83.5 million acres of soybeans for 2020. That number is up 10 percent from last year, if realized.

Acreage Preview Analysis 062420