South America Crop Forecasts Could Impact U.S. Farmers

USDA released/releasing their October look at crop yields and prices, but there will also be a lot of eyes looking at a report on what the farmers in South America are planting.

USDA Outlook Board Chair Seth Meyer said planting progress in South America could impact thinking of farmers and markets in the U.S. particularly for corn and soybean producers.

“Folks are looking; how many beans versus corn will the South Americans plant? Will they displace a little bit of that first crop corn with more beans? Is the signal for the South Americans to plant more beans? The market will be looking at this and I think it’s already starting to look forward in the U.S. and saying, ‘What are our farmers going to want to plant in the spring when it comes to corn and soybeans?’”

Meyer said if price indicators that soybeans are more valuable, we could see more soybeans planted than corn for only the second time ever.