Informa Economics, a respected private grain advisory firm, today released its widely anticipated acreage numbers for next year's bean and corn crops.
The firm projects a whopping 88.3 million acres will go to beans next year here in the US with corn acreage at 88.3 million as well. That is up 4 million acres from this year's bean acreage number. On the corn, we had 90.9 million this year.
Soybean prospects are strong because of the high prices compared to corn and the fact that they are cheaper to grown.
The beans were acting heavy in today's session but it does seem as if the Informa numbers added to some of the selling pressure that we are currently seeing in there.
Keep in mind that the recent rally has occurred in spite of the USDA projecting a nearly 33% increase in total global bean supplies over the next year. Logistical issues related to rail car and truck availability, as well as slow farmer sales, have contributed to the recent panic buying among some end users of meal but maybe the market is coming back to grips with the fact that there is not going to be any shortage of beans this year.
More later....
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