U.S. farmers' acreage plans not set in stone as corn price drops

Avante

31/03/2016 20:54

By Mark Weinraub 
    WASHINGTON, March 31 (Reuters) - U.S. farmers could plant 
more soybean acres than suggested in the government's acreage 
forecast issued on Thursday as recent gains in the futures 
market tempted them to alter their corn-heavy seeding plans, 
growers and analysts said. 
    The U.S. Agriculture Department report showed farmers intend 
to plant 93.601 million acres of corn this spring, the third 
most since 1944.  urn:newsml:reuters.com:*:nL2N17316N That forecast raised the prospect 
of adding more supplies to an already huge stockpile, sending 
corn prices into a tailspin and causing growers to question 
their seeding choices.  
    "That might make a difference," said Art Bunting, a farmer 
in Illinois who had planned on devoting 60 percent of his acres 
to corn and 40 percent to soybeans. "We might have to re-think 
what we are going to do. It might change some minds." 
    Bunting said the sell-off made him consider switching two of 
his 80-acre fields to soybeans from corn.  
    The USDA's prospective plantings report, which also forecast 
soybean acreage dipping 0.5 percent to 82.236 million acres, 
surveys farmers during the first two weeks of March. That leaves 
most growers with a month before they begin to put seeds in the 
ground. 
    Chicago Board of Trade November soybean futures  SX6 , which 
track the crop that farmers will plant in the weeks ahead, rose 
1.9 percent during the last two weeks of March, piquing farmers' 
interest after they finished their acreage surveys for the 
government. That compares with a 4.9 percent drop in the CBOT 
December corn contract  CZ6 .      
    But a March soy rally has not always enticed farmers to 
boost their soybean acreage. 
    During the last 40 years, when soybean prices have posted 
gains that outperformed corn over the last two weeks of March, 
final soybean acreage has fallen an average of 615,615 acres 
from the USDA's prospective plantings forecast. 
    In the years when soybeans have posted last-half March gains 
greater than this year's rally, soy acreage has declined an 
average of 377,462 acres from the USDA's outlook. 
    This year might be different, as the weak price environment 
has farmers facing steep losses for the crops they have yet to 
plant. Amid the poor profit prospects, many growers have delayed 
 fertilizing their designated corn fields in a bid to cut costs. 
    "Going forward, that corn number is going to change," said 
Brian Hoops, analyst at Midwest Market Solutions. "I just got 
off the phone with an Iowa farmer. He and his brother don't have 
any anhydrous (fertilizer applied ahead of corn planting) down  
and are definitely looking to switch to soybeans." 
 
 (Additional reporting by Michael Hirtzer in Chicago; Editing by 
Cynthia Osterman) 
 ((mark.weinraub@thomsonreuters.com; +1 312 408 8587; Reuters 
Messaging: mark.weinraub.thomsonreuters.com@reuters.net)) 
 
Keywords: GRAINS CORN/PLANTINGS