USDA’s 2020 Prospective Plantings report released Tuesday forecasts eight percent more corn acres this year compared to 2019 and ten percent more soybean acres.
Corn planted area for all purposes in 2020 is estimated at 97.0 million acres, up 8 percent or 7.29 million acres from last year. Compared with last year, planted acreage is expected to be up or unchanged in 38 of the 48 estimating States. Soybean planted area for 2020 is estimated at 83.5 million acres, up 10 percent from last year. Compared with last year, planted acreage is expected to be up or unchanged in 22 of the 29 estimating States.
The acreage estimates in the report are based on surveys conducted during the first two weeks of March, before the coronavirus impact on the economy really got serious. With ethanol plants idling and cutting back production, the question is how that will impact corn planting decisions.
Brian Basting of Advance Trading says USDA’s corn estimate was about three million acres higher than the average trade guess, and he says the impact of coronavirus on ethanol production may be offset by higher feed demand.
Listen to Basting’s analysis from the MGEX crop call on the plantings report.
Brian Basting, Advance Trading, MGEX Crop Call (3:38)