Analysts expect the USDA to raise estimates of US corn acreage

The market expects USDA experts to revise the U.S. planted acreage forecast, especially in case of warm weather in the coming weeks, Agrisencus reports.

According to preliminary forecasts released on February 15, in 2024 in the US, the area under corn will decrease by 3.8% compared to last year to 91 million acres, under wheat - by 5.3% to 47 million acres, while under soybeans will increase by 4.7% to 87.5 million acres.

USDA will release updated acreage projections on March 28 in its annual planting outlook report.

On March 13, the Allendale company released its own estimates of US seeded areas, which turned out to be significantly higher than those of the US MSG. So, Allendale expects 93.47 million acres of corn to be planted in 2024, 47.62 million acres of wheat and 85.83 million acres of soybeans.

American farmers, especially in the Midwest, rotate soybeans and corn in the same field and follow a 50x50 crop rotation, so if the weather conditions are favorable, they can plant more corn before they start soybeans, according to Advance Trading.

In the third largest corn-producing state in the USA, Nebraska, temperatures reached a peak of 25 ^o C on March 11, which exceeded the record by 14.5 ^o C. Neighboring states of Kansas, Iowa and Missouri also saw well-above-normal temperatures at the beginning of the month.

The National Weather Service forecasts below-normal temperatures in the Great Plains and western Corn Belt from March 24 to 28, while the eastern Corn Belt will experience above-normal temperatures.

Analysts believe the USDA's estimates of planted acreage for corn, soybeans and wheat are too low because growers tend to plant as much corn as possible when the weather is favorable. However, against the background of significant stocks in some regions, economic problems and dry weather, farmers may limit sowing.

In Ukraine, according to local experts, farmers will also dramatically increase the area under soybeans and reduce the area under corn due to lower prices and profitability of growing corn and wheat compared to soybeans and sunflowers.