April 4, 2022

 

US farmers to reduce corn and wheat plantings

 

 

US farmers plan to reduce corn and wheat plantings this year even though worldwide demand for both grains have soared due to Russia's invasion into Ukraine and domestic supplies of wheat are at their lowest in 14 years, Reuters reported.

 

Both Ukraine and Russia are major grain exporters, and shipments from both countries have been disrupted due to the war, escalating worldwide grains prices.

 

The US Agriculture Department said farmers planned to plant their biggest soybean acreage ever because high input costs involved with planting corn and wheat made soybean more attractive to grow.

 

Brian Basting, an analyst with Advance Trading said farmers were searching for alternatives after fertiliser prices rose and prices for soybean also increased.

 

Corn and wheat futures on the Chicago Board of Trade reached session highs following the USDA report, while soybean futures turned lower.

 

The USDA's yearly prospective plantings report said farmers planned to plant 89.490 million acres of corn, lower than the 93.357 million last year.

 

Soybean plantings increased to 90.955 million acres from 87.195 million. Wheat plantings were also 1.9% lower to 11.200 million acres.

 

US farmers plant most of their wheat in the fall.

 

Terry Reilly, senior commodity analyst, Futures International said they will need every acre in the USDA report to meet demand.

 

As of March 1, US wheat stocks were at 1.025 billion bushels. This is 21.8% lower compared the year prior and lowest in 14 years.

 

The USDA said corn stocks were at 7.850 billion bushels and soybean stocks at 1.931 billion bushels.

 

-      Reuters