USDA: Strong demand for corn/soybeans next 10 years
The USDA’s 10-year projections for food and agriculture include continued growth for U.S. corn and soybean demand. It expects corn acres to fall off initially, but increased corn production is expected in the later years. The report says lower corn prices suggest higher feed use, helping to fuel increasing meat production.
Ethanol production is projected to slowly rise over the next couple of years then decline to levels seen in 2016, by the end of the next decade. As ethanol production drops, the USDA says distillers grains production will also drop “further supporting the use of corn for feed.”
The 10-year projection says increased global demand and rising domestic uses for soybeans will cause prices to rise, generating higher returns for U.S. farmers.
For the first time, USDA expects soybean plantings to rise above corn, around 91 to 92 million acres.
Strong demand for soybeans around the world, especially in China, is expected to boost U.S. soybean trade over the next 10 years.
U.S. corn exports are expected to reach nearly 56 million tons by 2027 & ’28.