The USDA’s Prospective Plantings report came as much of a shock to agriculture. The USDA dropped its original estimate of 90 million acres each on corn and soybeans to 88 million acres of corn an 89 million acres of soybeans.
Initially after the report, corn, soybeans, wheat and cotton saw green on the board. Jim McCormick of Allendale, Inc. says corn acres fell into the range of what was expected, but soybeans was a surprise.
McCormick believes the 1 million acre decrease came from spring wheat stealing acres away from soybeans.
“Doing the math really quick, farmers in the northern part of the country said, ‘We’re going to plant that spring wheat—it’s a better deal than beans,’ and it came at the expense of beans. It shocked the market,” he said during a Facebook Live with U.S. Farm Report host Tyne Morgan.
Spring wheat isn’t the only crop seeing more acres. Cotton acres planted in 2018 is expected to be 7 percent higher than 2017, seeing 13.5 million acres.
Hear why McCormick doesn’t think the soybean rally is sustainable on U.S. Farm Report above.