This year, the Brazilian soybean crop was planted later in the season, meaning a late harvest to prevent a planting of double crop corn. According to Brian Basting of Advance Trading, Inc. on U.S. Farm Report, this year planting is either on time or early, meaning we could see “100 percent the double crop corn” planted in January or February.
The timing couldn't be worse. It comes when the U.S. is exporting large amounts of commodities and the January inauguration of President-elect Donald Trump.
This sounds scary to farmers and ranchers, but Jim Bower of Bower Trading said the Chinese have scouts in Brazil and Argentina to assess the situation first hand.
He expects to see some “winds of change” when it comes to soybeans.
Informa Economics released its 2017 acreage forecast, and both corn and wheat acres have declined, making way for more soybean acres. Corn acreage dropped to 90.84 million acres compared to 94.7 million acres last year. Basting believes it’s possible for corn acres to dip below 90 million acres.
Wheat prices, too, are predicted to be at their lowest levels in at least 50 years. Basting has seen a reduction of wheat acres in both hard and soft red wheat.
Watch Basting and Bower discuss acreage reduction and interest rates on U.S. Farm Report above.