The soybean market rally is pressuring the acreage discussion for 2022
A market analyst says the rally in the soybean market is intensifying the acreage discussion.
Brian Burke with John Stewart and Associates says record input costs and production issues in South America are making soybeans a more attractive choice. “Even in your highest producing corn areas, you’re seeing a very competitive soybean price and a very competitive return to that soybean acre.”
He tells Brownfield some areas across the Corn Belt will likely have increases in soybean acres. “Where corn production isn’t over 200 bushels that often or APH’s are in the 170s or 180s and soybeans can still yield 55 to 60 bushel-type numbers. We’ve been favoring beans there for awhile. Now, we’re favoring in those regions even more.”
He says each year there is some shift in acres and doesn’t expect corn to maintain the 93-million-acre benchmark in 2022. “Our number most of the winter has been 90 million corn and 90 million beans and that’s a difficult number for corn to get really comfortable with when you look at next year’s (supply and demand). That loss of 3 million acres is 400 to 450 million bushels and that will be felt.”
Brownfield interviewed Burke at the AgMarket.Net meeting in Kansas City.