February 17, 2006

US soy planted area seen at 74 million acres for 2006/07

US Department of Agriculture Chief Economist Keith Collins told a gathering at the USDA's annual Agricultural Outlook Forum that despite forecasts for record US soybean stocks, US farmers were expected to plant 2 million acres more than last year, bringing the total US soy acres to 74 million for 2006/07.

He said that even with the large supplies, CBOT futures prices had remained at high enough levels to spark the increased plantings. Moreover, high energy prices were expected to shift acreage from fertiliser-intensive crop such as corn.

The large acreage, on top of large supplies, is expected to drive prices lower, Collins said. He did not give a price forecast.

Collins said corn stocks were also ample. US farmers were expected to plant 1.3 million less acres to corn this spring, bringing the 2006/07 total plantings to 85 million acres. The stronger demand for ethanol and the forecast for lower acres contributed to USDA's forecast for a 10-15 percent gain in corn prices.