USDA expects more soybeans than corn in 2022
The USDA expects farmers to plant more soybeans and less corn in 2022.
Matt Bennett with AgMarket.Net tells Brownfield the Prospective Plantings report showed corn acres down 4 percent and soybean acres up 4 percent from 2021. “There’s no question that this corn situation has changed after this report into a more friendly tone. Need to buy acres potentially as far as swing acres whereas soybeans it’s basically the polar opposite discussion.”
USDA pegged corn at 89.5 million acres and beans at a record 91 million acres. Wheat is seen at 47.4 million acres up 1 percent from 2021 and total rice acres are down 3% on the year at 2.45 million acres.
He says market reacted accordingly after the report was released on Thursday. “It made sense to me because this was a flat-out game-changing number whenever you come up with an 89.5. The bean market was slow to react to what I would call a bearish stocks number and a bit of a bearish number when looking at acres.”
Bennett said he was surprised by the low corn projections given its price, but not surprised that soybeans were projected higher than corn.
He says it doesn’t come as a surprise. “Whenever you’re looking at cotton prices in triple digits, as long as these producers have enough moisture to get this crop up and going, and mostly have an average sized crop, that’s an absolute winner for most of these producers,” he says.
Bennett says the area for Upland cotton in 2021 was just over 11 million acres and for 2022, USDA estimates 12.1 million acres of Upland cotton planted.
Matt Bennett, Co-founder of AgMarket.Net: