The nation’s farmers planted the second-largest corn acreage in more than 60 years this spring and set a record for soybean acreage, based on a federal report that took both forecasters and commodity markets by surprise on Tuesday.
The survey by the U.S. Department of Agriculture led to a fall in prices that already were well below last year’s records. The report is based on a survey of approximately 73,500 farmers nationwide.
“It caught a lot of people by surprise. The market was leaning the other way,” said Darrel Good, a farm economist with the University of Illinois Extension. Illinois farmers planted a little more corn than last year, while soybean planting was down slightly.
Good said prices already were sliding as a result of weak export demand, bigger crops overseas and the economy. While there is a long way to go before harvest, he said the federal report accelerated the price trend, especially for corn.
“We’ve lost about 70 cents in the corn market in the last month,” said Good.
A wet spring and planting delays also contributed to speculation that corn and soybean acreage would be down in 2009. But a weekly USDA update released Tuesday found Illinois farmers took advantage of the recent warm, dry weather.
Corn planting has been completed with isolated exceptions, and nearly 90 percent of the soybeans have been planted.
“After this week, I think they’ll have most of the beans done. As for as corn, we do have some farmers who replanted. I’ve heard of some on the third replanting,” said Macoupin County Extension director Paula Robinson.
She added that planting progress has varied from field to field.
“The rain has been spotty. Some people have gotten two or three inches, and down the road they only got a half an inch,” said Robinson.
About this time last year, corn and soybean prices were on the verge of a record-setting summer run that took corn to about $8 a bushel and soybeans to about $16 a bushel. Corn for short-term delivery has traded recently for about $3.50 a bushel and soybeans for about $12.25 a bushel on the Chicago Board of Trade.
Auburn farmer Garry Niemeyer, who farms 2,200 acres, took a little larger bet on corn this spring with an 86 percent corn, 14 percent soybean mix. He said it appears farmers generally are betting on a rebound in the market by the time crops are coming in this fall.
