I don?t need to tell you that soybean prices are doing well right now. Demand is strong, and supplies are facing different challenges and victories across the globe. This means that this year?s crop will once again be important for the U.S. Ag industry. With input prices for corn also on a rise, there are questions as to how many acres may switch to soybeans. The USDA and market analysts are all saying that it may not be that drastic, but it won?t be determined until the crop is in the ground. There are too many variables still out there, including the weather.
One advocate for the soybean industry doesn?t think we will to astronomical of a shift in acres but expects us still to have a very strong year.
Jim Sutter is the CEO of the U.S. Soybean Export Council. He says the industry has a lot to be excited about as we get ready for this year?s planting season. He reflected on the record numbers we saw after the 2021 growing season wrapped up.
A large part of this strength that continues to push prices in the soybean complex comes from South America. They just didn?t get the yields they were hoping for in their last growing season. This is going to increase demand for a U.S. crop that is mostly still sitting in seed bags and containers across the country. Sutter says that he expects to see continued strength in our soy exports. We are still seeing these sales continuing for us in a time that would normally see more interest shifted towards South America.
The most interesting question for the U.S. soybean industry for 2022, revolves around the number of acres that will be switched over to beans in this current marketplace. The USDA has said that they expect to see a small percentage increase to planted acres of soy, but not anything that will drastically change the average split between our two biggest cash crops. Sutter says that he also believes that there will be an increase, but that many of those acres are going to be coming from farmers who already had a plan to make some changes over the past few seasons. He is not expecting to see a large revolution in planted soybean acres, but we won?t know for sure until the planters are done for 2022. We could see the weather influencing some acres, especially in the already saturated eastern cornbelt. But this, again, is purely based on speculation.
For more information on the work being done by the U.S. Soybean Export Council, be sure to visit their website.
This is just the first part of a series of topics that Jim Sutter talked with us about. Look for more coverage to come from the Iowa Agribusiness Radio Network.
