Last week’s WASDE report came and went without much of a stir in the stock market. Producers now need to turn the focus to the weather in South America.
According to Chip Nellinger of Blue Reef Agri-Marketing, Argentina has seen dry weather, but it hasn’t affected yields. If there’s no rain for that area, he believes it will build weather premium into the market.
The first of January, South America plans on harvesting soybeans, according to Bob Utterback of Utterback Marketing, which will allow them to plant double corn in northern Brazil two to three weeks earlier.
“They’re going to have a bigger corn second crop,” said Utterback.
Another story Utterback and Nellinger discussed was the acreage forecast for 2017 and the increase of soybean acres. Utterback listed Kansas, Missouri, Iowa, the Dakotas, Minnesota and Ohio as some states boosting their soybean acreage.
Utterback believes soybeans will increase 3 million acres on the low end, but he said 5 million acres could be a wildcard when shifting wheat acres are factored into the mix.
Not all wheat acres will be shifted to soybeans. According to Nellinger, some of the planting decisions have already been locked in, but overall he sees corn acreage decreasing.
Watch Nellinger and Utterback discuss how corn could be a sleeper and increased cotton in 2017 on U.S. Farm Report above.