The USDA’s Office of the Chief Economist forecast that farmers will drill 91.0 million acres of soybeans in the spring 2018, topping the record high set in 2017 at 90.2 million. Corn plantings should also rise, to 91.0 million acres, up from 90.4 million for 2017-18 but down from 94.0 million in 2016-17.
In the same report 2018/19 soybean ending stocks seen tightening to 376 million bushels, from 425 million at the end of 2017/18. U.S. corn stocks at the end of the 2018/19 marketing year, on 31st August 2019, would rise to 2.607 billion bushels, from 2.487 billion at the end of 2017/18.
Chinese importers reportedly purchasing up to 700k tonnes of US Corn over the last month as domestic prices rise creating a record spread between Chicago and Domestic which will encourage further business. USDA currently forecasts 3 million tonnes of imports for China, but many analysts are predicting levels closer to 5 million tonnes. However, still worth noting that current year import figures for China are 21.5% down on the previous year to date.