Ankeny, Iowa, USA
March 31, 2011

This morning, the United States Department of Agriculture (USDA) released its report of spring planting intentions.

Nationally, soybean acres are projected at 76.6 million acres, down 1 percent from last year. If realized, it will be the third largest U.S. area planted to soybeans on record. Meanwhile, corn is expected to be at 92.2 million acres, up 5 percent from last year and 7 percent from 2009.

Iowa growers’ intentions for planting soybeans are projected at 9.4 million acres, down 400,000 acres or 4 percent from 2010. Iowa corn acres are projected at 13.9 million acres, up 500,000 acres or about 4 percent from 2010.

As they return from a trade mission to China today, several leaders of the Iowa Soybean Association (ISA) responded from Taipei, Taiwan.

ISA Director of Market Development Grant Kimberley said, “As we’ve heard confirmed repeatedly during our trip, feed demand (therefore, soybean demand) in China continues to grow, driven by an increasing per capita GDP growth rate of 14.2 percent. Feed demand has been growing 7.7 percent for the past 10 years and 12 percent last year. Soy meal consumption in China has grown by 11.7 percent per year over the past 10 years, and that growth is expected to continue, driven by continued GDP growth in Asia, which results in increased demand for meat and feed.”

ISA CEO Kirk Leeds said, “With lower projected year-end stocks and unprecedented global demand, we can't help but be concerned with any reduction in soybean acres and thus soybean production. Numerous industry officials in China were clear that China's insatiable appetite for U.S. soybeans will continue to grow. Additionally, China is expected to see a reduction of 10 percent or more in soybean acres this year. Combined with the anticipated reduction of soybean acres in the U.S., this should be a very exciting market over the next several months.”
 

Website: http://www.iasoybeans.com

Published: March 31, 2011