There will be more corn and fewer soybean acres in 2023, according to a March intentions report from Farmers Business Network (FBN), a farmer-to-farmer tech platform.
The survey, representing 4.7 million crop U.S. acres, collected respondents’ zip codes, 2022 crop acreage data, and 2023 planting intentions.
According to FBN projections, nationwide corn acreage will increase 3.9 million acres (92.5 million) in 2023. However, Michigan farmers are expected to “pull back” in corn acreage.
“We are optimistic about export prospects,” FBN said.
“Argentina’s current crop has been whacked, which normally would compete with U.S. corn into our new-crop year. And Ukraine’s situation could result in a second year of limited corn production. Plus, China is likely to continue its trend of importing large volumes of corn. But even with the potential of a boost in exports, ending stocks are set to rise with such an increase in planted area.”
FBN said that, if realized, futures market would react negatively.
“We were officially 25% sold on new-crop corn before the survey,” the report notes. “We recommend moving an additional 10% to get to 35% sold.”
Soybeans U.S. farmers will plant 84.5 million acres of soybeans in 2023, a 3.4% drop from 2022, according to FBN.
Question marks remain for soybean crushing totals, demand potential from Renewable Fuel Standards, and available renewable diesel market opportunities.
“On the other hand, construction is actively taking place on new plants totaling 125 (million bushels) of potential new soy crush capacity that could come online throughout the 2023 marketing year,” FBN reported.
“USDA only penciled in an 80-million-bushel increase. As such, we think there is considerable evidence to expect carryout to be below 200 MB for 2023, and could lead to strong gains in new-crop soy prices, which have plummeted from $14 to $13 in the past month.”
Source: michiganfarmnews.com
Categories: Michigan, Business, Crops