The U.S. Department of Agriculture (USDA) announced on Thursday that American farmers are expected to reduce corn plantings in 2024 more than initially anticipated, while increasing soybean seedings. The decision comes amidst low crop prices and elevated input costs, prompting growers to seek cost-cutting measures. With global supplies on the rise due to expanding South American harvests and reduced demand from key importer China, both corn and soybean prices have remained near three-year lows. Analysts note a shift in planting practices, with farmers moving away from extensive planting seen in the previous year.
The USDA projects corn plantings to cover 90.036 million acres in 2024, a 5% decrease from the previous year’s 94.641 million acres and below the February forecast of 91.000 million acres. Soybean acreage is expected to rise by 3% to 86.510 million acres, marking the fifth-highest level on record but falling short of the USDA’s previous estimate of 87.500 million acres.
Additionally, USDA forecasts a 4% decline in overall U.S. wheat plantings to 47.498 million acres, primarily driven by reduced winter wheat acreage. The USDA’s quarterly grain stocks report revealed an increase in corn stocks to 8.347 billion bushels, soybean stocks to a two-year high of 1.845 billion bushels, and wheat stocks to a three-year high of 1.087 billion bushels as of March 1.
Following the release of the reports, Chicago Board of Trade (CBOT) corn futures surged to a seven-week high, with wheat prices also rising while soybean prices experienced a slight decline.