Understanding the 2011 planting outlook, ethanol and food pricing

The USDA released its annual Prospective Plantings report this morning, showing U.S. farmers intend to plant 92.2 million acres of corn, 76.6 million acres of soybeans and 58 million acres of wheat this year. The corn and wheat numbers are higher than the trade expected, while the soybean number is slightly below the average trade estimate. Corn and wheat plantings would be above 2010 levels, while soybeans would be slightly below.

Based on this acreage estimate, corn yields would need to average 159.7 bu./acre to maintain carry-out levels from USDA’s March WASDE report. To increase carry-out stocks to near one billion bushels, an average yield of 163.5 bu./acre would be needed. Such a yield is entirely possible and in line with trend yield growth from the last 15 years. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.