Farm Futures Predicts More Corn In 2016

The latest Farm Futures survey is predicting more corn and less soybeans for 2016. Results are indicating that margins full of red ink are causing producers to take a look at their options, one of which may be to cut back on crop acreage by almost two percent, with only corn and cotton seeing gains among the five major row crops. These increases, however, would still keep seedings below levels just two years ago. Farm Futures sees corn plantings up 2.3 percent to 90 million acres, with the biggest increases in Illinois and Indiana, where yields suffered last year. The survey indicates that many farmers are ready to cut back on soybeans after back-to-back record production years with a possible reduction of half a percent from 2015 at 82.2 million acres. Bryce Knorr, Farm Futures grain market analyst, says corn is gaining ground by default because farmers are a little more optimistic about rallies during the growing season after a lot of talk that the El Nino will end soon. Growers are putting their average price target for 2016 on corn futures at a price of $4.12, but estimating the average futures price target for soybeans at a dollar or more below break-even levels at $9.27.