The USDA released its report of spring planting intentions on Friday morning.
Nationally, soybean acres are projected at 73.9 million acres, 99 percent of the 74.98 million acres in 2011, while corn is expected to be at 95.86 million acres, which is 104 percent of the 91.92 million acres planted to corn in 2011.
Iowa growers’ intentions for planting soybeans are projected at 8.8 million acres, Record Iowa corn acres acreage is expected in Iowa, with a projected 14.6 million acres, which is 104 percent of the 14.1 million acres planted to corn in Iowa in 2011.
Iowa Soybean Association (ISA) President Dean Coleman says, “We may see a shift to more bean acres as this report will improve the corn/soybean ratio.”
Having just returned from a trade mission to China and Thailand, Coleman and other ISA leaders expect Chinese demand for soybeans will continue to grow, driven by urbanization, and U.S. soybeans will take “a significant portion of a much larger market,” according to ISA CEO Kirk Leeds.
For instance, Leeds says, “Chinese officials tell us they expect China’s hog production industry will ‘only’ grow 5 percent in 2012. But they have 650 million hogs. A 5 percent increase would be 30 million hogs.”
While China also imports soybeans from South American growers such as Brazil and Argentina, reports of this year’s South American soybean production continue to decline as more land is harvested.
Coleman concludes, “We will need more soybean acres, considering the drought in South America and the need to have the bushels available for our domestic and foreign partners.”
The USDA will issue a report in late June showing actual plantings.
To learn more about ISA, visit its website at www.iasoybeans.com.
