March 1

3/1 – In February’s Agricultural Outlook Forum, the USDA projected record large corn and soybean crops this year totaling 182M acres, with a 1M acre increase in corn and 7M more acres of soybeans. Farmers are very motivated by sky-high prices that are being supported by strong Chinese demand and the tightest stocks-to-use ratio since 2013/14. Corn futures, which were $3.07 per bushel in Aug 2020, closed at $5.55 on Friday. Soybeans have jumped from $8.70 to $14.05 per bushel over the same period; soymeal from $280 to $423 per ton. Soy oil futures, which fell to 14-year lows of $.2499/lb in March 2020, have more than doubled to 8-year highs of $.5134. The USDA cautioned increased crop acreage in 2021 is largely predicated on favorable weather conditions in the Corn/Soy Belt, however, (so far) meteorologists are calling for a hot, dry “La Niña” summer in 2021.