USDA’s acreage, price projections for 2020
The USDA’s chief economist is projecting an increase in most cropland acres for the 2020 growing season.
Rob Johansson told attendees at the USDA’s Ag Outlook Forum that last year’s weather challenges resulted in more than 13 million fewer acres planted to soybeans. “That reduction supports an increase in soybean acreage to roughly 85 million acres – up 12 percent,” he says. “Corn area is expected to rise 4.3 million acres to 94 million following last year’s prevent plant. That’s supported by new-crop prices that are relatively favorable to corn.”
Wheat and cotton acres are projected to remain steady or decline with more acres expected to be planted to rice.
He says the anticipation of a return to normal trade should help soybean prices this year. “Soybean prices will rise modestly,” he says. “Up a nickel to $8.80 a bushel this coming year. Supported by lower stocks compared to last year’s record level.”
As for corn prices, Johansson says, “In contrast, corn is expected to decline $.25 to $3.66 a bushel, with larger corn acres and an expected return to trend yields.”
Johansson says wheat prices are projected to increase $.35 to $4.90 per bushel and cotton prices are pegged to increase $.01 to $.64/pound. Rice, however, is expected to drop $1 per hundredweight to $12/cwt.
Johansson made his remarks at the 2020 Ag Outlook Forum in Washington, DC.