4-11 FB Planting

 A major AgriFinance operation’s take on what to be planting in 2011.

 Rabobank’s Food & Agribusiness Research and Advisory group is releasing a report today that looks at competition for acres among U.S. field crops. The report estimates a record number of corn, soybean, wheat and cotton acres will need to be planted in 2011. Here’s spokesperson Sterling Lidell: “The planting year 2011 is a lot different than all of the previous years where all of the major crops  have been price competitive coming into the planting intentions period and also the planting period and so competition has generally been one crop taking a significant amount of acres from another crop. This year the prices are such that there really is not the economic incentive to move heavily in one crops direction. Tight supplies in corn, cotton, soybeans are creating a situation that should bid more acres into production. Wheat has also been tight but not as tight as corn. At the same time, really wet harvest in Canada, flooding in Australia, a drought in Russia has put a premium on proteins.

 While wheat has the most comfortable stock position of the four major U.S. crops, globally, quality issues made higher protein wheat scarcer last year.