As HAT has been reporting this week from the farm show, the trend for 2018 is more soybean acres and fewer corn acres. What market impact will that have? Bill Gentry, with RMC, heard weekly on HAT, told me that last year many growers talked about switching to soybeans, but, in the end, did not. This year the switch to soybeans is real, “This year farmers are looking at tighter sense of reality. The cost of money is getting higher and the price of inputs have not come down as much as we had hoped. The cost of putting out a corn crop is quite high this year, so the chances of greater soybean acres is much higher.”
Gentry says much of the increase in soybean acres will come from fringe areas, “Areas like Kentucky, North Dakota, and South Dakota will be among the first to make the switch to soybeans.” He believes that 2018 will be the year we see a major shift to soybeans. This was supported by comments made to HAT by farmers and seed companies at the farm show.
An increase in soybean acreage will put pressure on the market, but Gentry says, for the most part, soy prices will remain strong, “Anticipate lower soybean prices going forward, but selling $10 soybeans is an odds on favorite and represents a profitable crop. Corn prices right now are not an incentive.”
Gentry sees $10 soybeans and $3.95 corn ad likely targets for 2018, “We had the chance to see corn at $3.95 several times this year; and most did not do it, but now wish they had. Don’t be pie in the sky, but set realistic targets.” He feel $10 soybeans and $3.95 corn are reasonable and possible.