Even though USDA’s 93.6-million-acre corn plantings projection shocked many, producers should take a step back and think about the numbers in context. That’s according to Angie Setzer, Citizens LLC.
“It’s kind of like Christmas when you’re expecting a pony and you open it up and you get socks or maybe a toothbrush,” Setzer tells “AgDay” host Clinton Griffiths on the Agribusiness Update. “First, take a deep breath. That’s the main thing.”
Then realize “every minute that goes by is another minute we’re probably taking some of those acres off from corn and putting them somewhere else.” Consider that in states where corn acres are expected to increase a lot—for example, Mississippi, Arkansas and Louisiana—farmers are having second thoughts about corn because of wet conditions.
“They have about two weeks to 10 days, it depends on who you ask, to really make the decision on whether they want to try to plant that corn and risk it pollinating during the extreme heat of the summer,” Setzer explains. “Secondarily, we saw a big increase in Kansas, big increase in North Dakota, so some of your fringe acres are where the increases are happening. Don’t get me wrong, we saw a couple hundred thousand acres more in Indiana and Illinois, and Iowa looks to increase, so there is some of that talk. But guys right now might look at $9.30 soybeans and decide that’s much better than $3.50 corn.”
Going forward, focus on sales opportunities.
“Make sure you take advantage of the marketing opportunities in soybeans because they’re there,” she says. “… Continue to scale sell as soybeans rally … but also be aware that when you get the opportunity in corn, we get back up toward that high end of the range that we saw going into the report and see any additional pennies added to that market, that you’re going to want to try to grab hold.”
Click the play button below to watch the complete “AgDay” interview with Setzer.