U.S. Farmers Have a Touch Decision in the Next 10 Years

Examining the 10-year baseline of the US corn, wheat and soybean markets allows for anticipated changes challenges and trends on how to navigate those markets. Vice President of Grain and Oilseed Analysis with Rabobank Andrick Payan, is in for the second day of this three day series with details on the planted area outlook of oil seeds from Robert banks recently published a 10- year outlook.

“Another trend that we you know, that we talked about in our report is planter area in the US. This one is really important because when you look at corn and soybeans, they're likely to stay together. If you add the two of them together, they're gonna stay around the one 80 million acres, but if you factor in wheat into the equation, we start seeing that you know, the combined acreage of these three commodities are actually slowing down trade. So basically it means to us that wheat is not growing much in the U.S.”

The reality is according to Payan, this is that because of yield increases here in the U.S. there will come a time when US farmers will have to decide whether or not to keep producing at the current pace.

“The U.S. is facing more competition globally and is not able to export all this extra production that is not being consumed domestically. You know the US is gonna face a tough decision.”

Andrik Payan with Rabobank.