Another important point is that actual planted acreage will adapt in response to further information, including this report. Using stocks-to-use from the most recent WASDE report to measure the supply/demand balance, the soybean market appeared to be tighter than the corn market. One could argue that soybeans are in more need of additional acreage than corn in 2023. While corn prices were essentially flat, the soybean market did move on Friday with an increase in new crop price of about $0.15 per bushel and an even more significant increase in old crop price. As I wrote this on Monday April 3rd, soybean futures were up again. While this picture will become clearer over the next couple of weeks, one could view this as an attempt to ration old crop beans and attract a few more acres to bean planting this spring.
Regarding implications for cattle producers, the acreage battle for 2023 is clearly on. Feed prices are currently high, and significant change is not likely before harvest. Additional corn acres would undoubtedly be seen as a positive from the perspective of livestock feed prices. Still, it is essential to remember that planted acres will react to information in the coming weeks. I would not be surprised if the new crop price ratio adjusted such that actual corn planted acreage came in below the Prospective Planting estimate. Most importantly, one must remember that acreage is just the beginning. With new crop corn prices on the board North of $5.50 per bushel, weather for the 2023 growing season will be critical in determining the direction of feed prices throughout the year. The full Prospective Plantings report can be found here.
Source : osu.edu