April 3, 2006

USDA expects record US soy planting in 2006

The US Department of Agriculture said Friday (Mar 31) it expects US farmers to plant a record-level 76.9 million acres with soybeans this year, a 7 percent increase from 2005.

The USDA also said soybean stocks, as of March 1, were at a record level.

The USDA, in its annual Prospective Plantings report, said it expects soybean planting this year to be "the largest planted area on record," due mainly to farmers switching from other crops.

"Acreage increases are expected in all growing areas except in the central and southern Atlantic Coast states and the southern Great Plains," USDA said. "High input costs have farmers in the Corn Belt switching to soybeans from corn."

The USDA, in the same report, lowered its forecast for US corn planting this year by 5 percent. Corn, the USDA said, is more dependent on "high fertiliser and fuel costs".

In a separate Grain Stocks report, also released by USDA Friday, March 1 soybean stocks were estimated at a record level of 1.67 billion bushels, up 21 percent from 1.38 billion bushels a year ago. The increase was generally expected by analysts interviewed earlier this week.

"This is the largest March 1 stocks level on record, exceeding the previous record set in 1999 by 1 percent," the USDA said. "Soybean stocks stored on farms are estimated at a record high 872 million bushels, up 10 percent from a year ago. Off-farm stocks, at 797 million bushels, are up 36 percent from last March and are also at a record high level."