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Are soybeans the better option?

A grain analyst says soybean acres could increase as much as five to 10 percent this planting season.

Angie Setzer with Michigan-based Citizens Elevator tells Brownfield at the start of December the soybean to corn carryout hit a record level which might have caused farmers to shift their acres to more soybeans.  “Seeing these high numbers towards the end of the year could indicate that we could see farmers leaning towards heavier soybean planting as the soybean market has been so strong with the corn market staying the same or remaining range bound.”

She says the USDA is predicting almost double the U.S. carryout this year and an expected large South American crop could fill the global pipeline at least through the summer.  “Really at this point in time we would need some sort of logistical issue out of South America, perhaps a weaker U.S. dollar on our side and a production issue out of South America in order to really continue to enhance that export demand.”

Setzer says record low wheat plantings might also provide some cash basis opportunities for farmers especially if there are production issues.

AUDIO: Interview with Angie Setzer