Schnitkey: You might want to temper price expectations
Huge future grain production increases are expected in Brazil along with continued higher exports of soybeans, corn and meat.
Gary Schnitkey, the farm management professor with the University of Illinois, says “If you’re looking at high corn and soybean prices now you might want to temper your expectations in the future because there’s 40% NEW acres coming on in Brazil and there likely will be other acres as well.”
He says grain production is expected to increase in Brazil by 71% because of those new acres. Schnitkey says U.S. acreage remains stable and is not expected to grow.
“The double crop and triple crop phenomena is likely to be much larger than Brazil than here and that will contribute to that acreage increase and therefore exports as well.”
Brazil has emerged as the largest U.S. competitor in the global corn market ahead of Argentina and Ukraine – as its second crop and emerging triple crop corn production grows. Brazil is expected to keep and widen its lead in soybean production.
Schnitkey made his comments during this week’s Farm Doc webinar.