USDA: Commodity prices to rise, soybean acreage to surpass corn
Commodity prices will rise slightly in the coming years and soybean acreage will surpass corn acreage in the United States for the first time, the Agriculture Department said today in its agricultural projections to 2027.
The report was released in advance of USDA’s annual Agricultural Outlook Forum next week.
“The end of “king corn” would profoundly change the traditional lineup of the four major U.S. field crops — corn, soybeans, wheat, and cotton,” said Chuck Abbott of the Food and Environment Reporting Network in an analysis of the report.
“Food and feed grains prices are expected to have bottomed out by marketing year 2017-18,” USDA said in its analysis of U.S. crops. “Marketing year 2018-19 marks the beginning of gradual price increases that are expected to continue through the decade.“
“Despite price growth, prices are projected to remain lower than those seen over the past decade, leading to shifts in relative returns and accompanying changes in crop plantings,” USDA said.
“Shifts in acreage are expected — most notably from corn and, in the short run, wheat towards soybeans and sorghum, reflecting strong international demand for these commodities. These projections are the first in history where soybean acreage is expected to eclipse corn acreage.”
–The Hagstrom Report