March 2, 2007

USDA: US soy planted area seen at 71 million acres

Planted acreage for US cotton and soybeans is seen falling as farmers sow more corn instead this year, said US Department of Agriculture Chief Economist Keith Collins Thursday (Mar 1).

Planted cotton acreage is seen at its lowest levels in the last 17 years, although Collins did not give a figure. He said soybean planted acreage is seen at 71 million acres, while harvested acreage is seen at 69.9 million. Collins gave the forecast at the USDA Agriculture Forum.

Strong ethanol demand is pushing up corn prices and leading farmers to plant more corn at the expense of other row crops.

Collins said while the situation for corn, wheat and soybeans looks positive, the outlook for cotton is much different. With soaring ending stocks of over 8 million bales for 2006-07, farmers are opting to plant less of the fibre. However, lower cotton plantings should lead to less production and eventually restore some balance to the market.

Collins also expects "some recovery in exports to China," which will eventually lead to a reduction in US ending stocks.

He said the reduction in soybean planted acreage will eventually lead to lower production and help to reduce record-high soybean stocks. Collins said the average farm price for soybeans is seen at US$7.10 a bushel up from US$6.20 last year. He gave no average farm price for cotton.