SAN CARLOS, Calif. & CHICAGO--(BUSINESS WIRE)--FBN®, the global farmer-to-farmer network, today announced that its 2021 U.S. Acreage Report found that strong prices and good planting weather likely helped push the corn acreage number above the USDA's March reading of 91.1 million acres (MA).
Soybean planting, which was estimated at 87.6 MA acres in March, FBN projects now could drop to 86.5 million -- potentially indicating a razor thin carryout crop.
"The USDA report usually drives volatility that's three to four times greater than a typical trading day," said Kevin McNew, Chief Economist at Farmers Business Network®. "With grain stocks at the tightest level in seven years, we want to provide our farmer members with the most comprehensive data and intelligence ahead of this report so they can make the best decisions for their operation."
FBN's report is based on survey responses from more than 2,000 farmer members, aggregated across 40 states, representing 4.2 million acres and 9 principal crops.
For the corn crop, FBN's latest data show that Illinois, Minnesota, and Missouri were the three biggest leaders when it came to increasing corn acres. Farmer preference for corn appears to have worked against soybeans this season. While the overall loss of 1 million acres is a small drop, it could lead to big price implications. Illinois farmers appear to have reduced soybean acreage more than any other state, by 297,000 acres.
Spring wheat acres planted increased minimally and likely won't put downward pressure on prices, with farmers in Montana expanding this planting of this crop. North Dakota and Minnesota appeared to reduce their spring wheat acres versus March.
"The biggest factor since our spring planting report has been the drought that has impacted a wide swath of the West and Midwest," said McNew. "Looking ahead, there will be a number of key drivers -- from Chinese demand to the drought conditions to international crops -- that will impact markets."
From June until harvest, there are several market factors to keep tabs on for each crop. As China continues to rebuild its hog herd, their demand for corn remains high. This demand, paired with production losses in South America, fueled higher prices in the U.S. growing season. Weather conditions could impact prices; timely rains could materialize and lower prices this fall compared to what is currently available. On the soybean front, limited U.S. acres and an increase in Chinese demand should drive prices higher, McNew says. Substantial yield losses for the spring wheat crop, meanwhile, are nearly assured given the dismal crop ratings.
Farmer’s Business Network, Inc. is an independent ag tech platform and farmer-to-farmer network with a mission to power the prosperity of family farmers around the world, while working towards a sustainable future. Its Farmers First® promise has attracted over 25,000 members to the network with a common goal of maximizing their farm’s profit potential. FBN has set out to redefine value and convenience for farmers by helping reduce the cost of production and maximize the value of their crops.
The FBN network has grown to cover more than 70 million acres of member farms in the U.S., Canada, and Australia. Blending the best of Midwestern agricultural roots and Silicon Valley technology, the company has over 600 personnel and offices in San Carlos, Calif., Chicago, Ill., Sioux Falls, S.D., a Canadian Headquarters in High River, Alberta, and an Australian Headquarters in Perth.
To learn more, visit:www.fbn.com.