King corn may return in 2019 if soybean prices don’t make a move soon.
Matt Bennett with Bennett Consulting spoke to AgDay host Clinton Griffiths about anticipating planted acreage in the new year based on current prices.
“Well I think it’s going to be very interesting to see what’s the acreage mix going to be with corn versus beans,” says Bennett. “How many acres are we going to take out of the mix?”
In 2018, soybean acres at 89.6 million outpaced corn at 89.1 million acres. It’s the first time soybeans have topped corn since 1983. He thinks corn prices will curry favor with farmers as they make planting decisions in the new year.
“I’m looking at the carry out levels for both corn and beans not only from the U.S. perspective but the world perspective,” says Bennett. “I do think there’s a lot of reasons to have some optimism.”
Bennett worries trade tensions and stagnant soybeans will keep corn from rallying too high regardless of the fundamentals.
“I just hope that the soybean market isn’t more of an anchor on the market,” says Bennett. “I do think wheat acres are going to be up as well.”
He says the upcoming G20 summit and the anticipated meeting between President Trump and Chinese President Xi Jinping could provide a spark for markets in December.
Regardless of how the talks go, Bennett expects to see fewer soybean acres in 2019.
“There’s a reason people are talking about corn-on-corn for the first time in several years,” says Bennett. “I would say a two to four million acre switch on corn would be pretty reasonable to assume.”
