Talking to Dow Jones Newswires this week, USDA Chief Economist Joseph Glauber, says soybean plantings are expected to rise in the next report, probably at the cost of corn acres. Glauber was speaking ahead of the release of Tuesday's report.
Soybean futures prices have risen sharply since the end of March while corn futures have remained relatively flat. A wet spring and a lag between the fall in fertilizer prices and retail costs are also expected to encourage some farmers to switch to the oilseed.
Glauber told the wire service that with better weather there might have been more corn acres; and adds that late corn planting could impact average yields as well.
He notes that biofuel demand could be flattening as well. Glauber says year-over-year production growth should slow over the next three years. And any downward revision to corn acreage could result in an upward revision to corn's price outlook, especially with the biofuel mandate already providing a price floor. He adds that there is "no question" that biofuels have an impact on food prices.
Powered by iNet Solutions Group ©2011 All Rights Reserved.