U.S. Department of Agriculture Chief Economist Keith Collins last week told the audience at the USDA’s annual Agricultural Outlook Forum that despite forecasts for record U.S. soybean stocks, farmers were expected to plant 809,000 hectares more than last year, bringing the total U.S. soy area to 29.9 million hectares for 2006-07.
He said that even with the large supplies, futures prices had remained at high enough levels to spark the increased plantings. Moreover, high energy prices were expected to shift acreage from fertilizer-intensive crop such as corn. The large planted area, on top of large supplies, is expected to drive prices lower, Collins said. He did not give a price forecast.
Source: soyatech.com Feb. 20, 2006.