Loss of Six Million Acres of Corn, Soybeans to Adverse Spring Weather to Cut Stockpile by One Quarte
Adverse weather and excessive rain this spring have resulted in the loss of nearly six million acres of U.S. corn and soybeans, with the U.S. Department of Agriculture (USDA) predicting the smallest U.S. corn crop in four years, and the smallest soybean crop in six years. As of the end of June, the USDA estimated that U.S. farmers would plant 1.1 million fewer acres of corn, and 4.6 million acres fewer soybeans than had been initially planned for at the beginning of the season.
The short crops are expected to draw down the large U.S. stockpiles, with the country’s soybeans inventory, which is forecast to reach a record 1.05 billion bushels this year, being reduced by a quarter prior to the beginning of the 2020 harvest. At the same time, the U.S. wheat crop is expected to be larger than usual, and would be diverted to livestock feed to offset the lack of other grains.
Carryover soybean inventory is expected to fall to 795 million bushels - still the second largest stockpile on record, and the equivalent of a 10-week supply - a drop of 24 percent by the time the 2020 crop is mature.
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