Iowa is the nation’s top soybean producer and the state’s growers are poised for an excellent year ahead, according to predictions from the U.S. Department of Agriculture.
Market analyst Rachel Trego says soybeans are forecast to buck all trends expected for the rest of the major grains and oilseeds in the 2017 growing season.
“Planted area is set to decline except for soybeans,” Trego says. “Supplies declining except for soybeans, exports declining except for soybeans, domestic use declining except for soybeans, stocks decline except for soybeans.”
The general outlook for all grains and oilseeds will be modestly higher prices. Iowa’s -other- top crop, corn, does not have as bright a future, according to the agency’s predictions. Trego says corn acreage, supplies, exports and stocks are all expected to fall.
“Planted area is forecast down 4%,” Trego says. “The yield is forecast down 2% from the record set in 2016-17. With lower expected harvest area and reduced yields, this results in production being down seven-percent.”
While corn production in general should be down in the year ahead, exports may drop even further.
“These are forecast to decline nearly 15% to 1.9-billion bushels,” she says. “Ending stocks are thus set to decline, however, they do remain relatively robust with stocks to use at nearly 15-percent.”
One of few bright spots on the report, the USDA projects a small increase in the season average farm prices.
By Karla James