Thanks to an improving price outlook, U.S. growers look ready to increase plantings of corn, soybeans and wheat for harvest in 2011, according to Farm Futures' first survey of new crop acreage intentions for the coming year.
The survey found that corn acres could increase almost 2% in 2011, to 89.5 million, compared with 87.9 million sown this spring. That would be the second biggest crop put in since the end of World War II.
Farm Futures see soybean acreage setting another record in 2011, with farmers ready to plant 79.6 million acres. This would be the third record acreage total in a row for soybeans.
Winter wheat acreage plummeted a year ago, with wet conditions and harvest delays slashing winter wheat seedings by 13%. Most of those lost acres should be put back into production, with plantings this fall rising to 41.7 million acres, up more than 10% above year-ago levels. With other spring wheat and durum acreage in the spring forecast to be steady, total wheat seedings for harvest in 2011 could climb back to 58.3 million acres, close to the levels planted two years ago.
"The corn and soybean numbers are on target for what I'd expect in early August, with both crops looking good, providing a feeling of optimism for next year," says Farm Futures Market Analyst Arlan Suderman. "Farmers are particularly optimistic about corn for next year, so I think the increases are very reasonable."
Suderman notes the survey period in late July and early August coincided with the big rally in the futures marketed triggered by the Russian drought. "Producers were very mesmerized by the run in futures, which provided them incentive to plant as much winter wheat as possible this fall."
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