Farmers may plant more soybeans in 2018 if extra wheat acres remain.
Merrill Crowley with Midwest Market Solutions believes this could happen if wheat isn’t lost to winter kill from extremely cold temperatures and little snow. This has only happened a few times over the years.
Good weather in South America with adequate rain will continue to pressure the soybean market.
“If you’re looking to sell beans, pay close attention to this rally here,” Crowley said following Friday’s USDA reports.
Crowley is looking for a low of $3.40 for March corn, which closed around $3.47 on Friday. This could finally be the high water mark for last year’s crop and better prices could be down the road if weather issues arise somewhere.
In the USDA report, soybean ending stocks were in line with trade expectations and soybean exports were decreased, which is why there are issues with beans. Wheat acres were lower than the average trade guess which is why wheat was down 13 cents Friday.
“That, I think, helped pull the corn down as well,” added Crowley.