As of June 21, farmers still needed to plant 8.5 million acres of soybeans, says Brian Grete, editor, Pro Farmer. That leads many to think crop acreage will be lower than expected in USDA reports set to publish Tuesday.
“That would be a normal assumption with that many acres left to plant,” Grete says during the “AgDay” Agribusiness Update segment for June 29. “But I think the March intentions were too light, and as a result, we should see both corn and soybean acreage go up from March.”
It’s true the figures still won’t be a holistic representation of what farmers end up producing.
“It becomes more of a harvested acreage issue as we move further down,” Grete explains. “It doesn’t really matter what’s planted. It does to some degree because of harvested percentage, but it’s the harvested percentage times your yield that gives you your total production.”
Also of interest to the trade on Tuesday will be USDA’s quarterly grain stocks update.
“I think it’s on the soybean side of things this time where we could really get some answers,” Grete says. “Because the quarterly stocks, based on what we’re seeing in basis and some of the other things out there tell us the supplies just aren’t as much as what everybody thinks they are. They either overestimated the ’14 crop or we’re going to get a number that tells us that the supplies are being held on-farm more so than what we anticipated.”
Click the play button below to watch the complete interview with Grete.