A new report out of Canada shows producers there will plant 27% more soybeans in 2017 than a year ago, reflecting strong global demand for the crop, says Jerry Gulke, president of the Gulke Group in Chicago.
“The market’s telling us, ‘Don’t move acres from soybeans back into corn,’” Gulke tells “Weekend Market Update” host Pam Fretwell in an interview airing Saturday, April 22. “We found out a week ago or so that we have a better crop of corn coming in South America, and that helps offset any shortfall we might have here [in the U.S.] because of less acres. It’s kind of like the market is saying we’ve got enough corn, soybean demand is awfully good around the world and we need the keep the incentive there to keep planting it.”
The soybean market let the Canada acreage report roll off its back, closing 5 cents or 6 cents higher on Friday yet changing little for the week.
“Corn was down significantly for the week—14 cents to 15 cents,” Gulke says. “If there was a concern for planting too many soybeans in North America and not enough corn, the market sure didn’t reflect it this week.”