Farmers in the United States have been planting more and more acres to soybeans.
There is a simple reason behind this increase. Soybeans have been more profitable than other crops over the last several years. The question now is how many acres will they plant next year. University of Illinois Commodity Markets Specialist Todd Hubbs has been thinking about that one and he decided to determine how many acres are needed if the stocks-to-use ratio was to stay at about seven percent.
Hubbs says that number should provide a $9.50 season’s average cash price.
If you use USDA’s long-term trend line yield for next year, 48.4 bushels to the acre, then the harvested acreage number must drop to about 85.4 million in order to get to the $9.50 season’s average cash price. That’s 86.2 million acres planted to soybeans in the United States next spring.
From the National Association of Farm Broadcasting News Service.