Industry analysts are expecting U.S. farmers to plant more soybeans next year, up from this year’s record acreage of 88.7 million acres. Experts say farmers could plant anywhere from 86 to 90.5 million acres of soybeans in 2018. University of Illinois ag economist Todd Hubbs is warning against planting more soybeans next year. He says soybean acreage may need to decline in 2018 to generate a 2018-19 marketing year average farm price in the mid-$9.00 range to cover the cost of production. He recommends that farmers monitor soybean exports and demand before making 2018 planting decisions. Specifically, he says farmers should study the Department of Agriculture’s release of the Winter Wheat Seedings report for the first indication of farmer acreage decisions in early January.
Soybean futures, however, are trading above $10 a bushel. Tom Fritz, with EFG in Chicago, says this is the market’s way of buying more acres, “The market is saying we will need more soybeans in 2018 to meet demand.” He added that planted wheat acres will be down this fall and it is likely some of those acres will be planted to soybeans next spring.
Source: NAFB News Service and HAT