Analysts think farmers in the United States will plant more of their land to corn this year than they have for two decades. The US Department of Agriculture (USDA) at 8:30 am EST (1330 GMT) Thursday will release its annual March planting intentions report along with the March quarterly stocks report. Fears about losses of soya yields amid the potential spread of Asian soya rust, a continuous stream of bin-busting corn hybrids and disenchantment with wheat production and prices has shifted many farmers into the corn planting camp, the analysts said.
"Farmers have had good corn crops for several years now. Rust is an issue but most farmers have been to maybe a hundred meetings now on how to control rust, so I don't think rust is the only reason they'll plant corn," said Steve Freed, analyst for ADM Investor Services.
An average of analysts' estimates pegged this year's corn acreage at 82.4 million, up from 80.9 million last year and the most since 83.4 million in 1985.
The analysts think soya acreage will drop sharply to a seven-year low of 73.4 million from the record large acreage of 75.2 million last year. The Asian rust concerns will help trim soya acres but a roughly 25 percent rally in soya prices since early February helped pull many farmers back into soyabeans.
Almost perfect weather from seeding to harvest in 2004 allowed the nation's farmers to garner an astronomical 11.8 billion bushel corn crop, sharply above the previous record of 10.1 billion harvested just the previous year. Partly because of last year's fun, farmers this year will roll their corn planters early and often, weather permitting.
"The key is what happens the first 10 days in April. We have plenty of soil moisture and if the spring season is negative for planting corn that could change things drastically," said Jerry Gidel, analyst for North America Risk Management Inc.
Farmers last year were able to plant nearly all of the corn crop early in the spring, which enables the corn plant to generate optimum yields. Generally the ideal time for US corn seedings is mid-April to mid-May.
Problems planting the 2005 US soft red winter wheat crop in the Midwest because of excessive wet weather last fall also will boost corn plantings, the analysts said.
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