News
USDA Acreage Report friendly for crops, devastating for livestock producers
Corn and soybean futures closed sharply higher Wednesday after USDA’s planted acreage revisions failed to meet trade expectations.
Iowa State University Extension economist Chad Hart says USDA grew the acres, but not nearly as much as the market was expecting.
“With the drier conditions we saw this spring, there was heavy industry expectation that it meant more acres were coming into play.”
Corn acreage was reported at 92.7 million, about a million fewer than what analysts were expecting, but up two percent on the year.
USDA pegged soybean planted area at 87.6 million, below all estimates, but up five percent from a year ago.
Hart tells Brownfield while the report was friendly for crop farmers, it’s another blow for livestock producers already facing high feed costs.
“Especially for our cattle producers, we’re looking at range and pasture land that has taken a beating due to the drought. So it’s definitely reflecting continued high to even higher feed costs as we look out over the next several months.”
He says there’s more upside potential for corn and soybeans because USDA has not adjusted its yield estimates to reflect worsening drought conditions in the Western Corn Belt and Plains.
