CHICAGO: US farmers are planning to cut corn plantings by more than expected in 2024 while expanding soybean seedings, the US Department of Agriculture (USDA) said on Thursday, as low crop prices and high input costs have many growers looking to cut expenses.

Prices for both crops are hovering near three-year lows as global supplies swell with rising South American harvests and slowing demand from top importer China.

“Farmers last year were planting fencepost to fencepost and that’s going to change, what with prices being where they are,” said Jack Scoville, analyst with Price Group in Chicago.

The USDA said farmers plan to seed 90.036 million acres with corn in 2024, down 5% from 94.641 million acres last year and below a USDA forecast in February of 91.000 million acres. Corn acres in the top 14 producing states were down from last year and steady to lower in 38 of 48 states, USDA said.

Soybean plantings were seen rising 3% to 86.510 million acres, from 83.600 million in 2023, the fifth most on record but short of the 87.500 million acres forecast by USDA last month.

Analysts had expected corn plantings to decline to 91.776 million acres, while soybean seedings were seen at 86.530 million acres.

USDA projected that all US wheat plantings will decline by 4% to 47.498 million acres, from 49.575 million in 2023, led by a drop in winter wheat acres.

The USDA in a separate quarterly grain stocks report said stocks of US corn as of March 1 swelled to 8.347 billion bushels, the most in five years. Soybean stocks rose to a two-year high of 1.845 billion bushels, while wheat stocks rose to 1.087 billion bushels, a three-year high.

Benchmark Chicago Board of Trade (CBOT) corn futures were up 3% near midday after surging to a seven-week high immediately after the report. CBOT wheat was up about 2% while soybeans were down 0.4%.