A Wall Street Journal article says farmers plan to plant more corn, soybeans, and wheat than last year, but they also face more uncertainty.
The article goes on to say a banner year for grain prices has U.S. farmers planting even more commodities than they did last year. However, high fertilizer prices, forecasts for more weather challenges, and the threat of China slowing its demand for global commodities may put a damper on the anticipation.
“Row crops this year soared to highs not seen in years,” the Wall Street Journal article says. “Those highs came about because of surging global demand and inflation, so farmers will likely increase planting as they try to sustain the momentum of 2021.”
Analysts and investors say geopolitics may bring more volatility to prices next year. The biggest potential disruptions to international trade include U.S. and China tensions and the Russian troop buildup near Ukraine’s border.