As the soy market becomes more complicated in many ways, it also remains pretty simple when it comes to China.
With the price of corn and wheat in the doldrums, farmers will be contemplating replacing acreage with soybeans. The USDA’s Prospective Plantings report, published on March 31, could influence any decision.
U.S. Production And Trade
After corn, soybeans are the second-biggest crop in the U.S., followed by hay and wheat. Soybeans also have the second-largest planted crop area (76.8 million acres 2013/14) in the country.
U.S. Planted Crop Areas
Source: U.S. Wheat Associates (from USDA data – Crop Acreage Report : 6/30/14)
The U.S. is not only the world’s largest producer of soybeans, it is also its largest exporter.
World Soybean Production – 2014/15 (March) ('000 Metric Tonnes)
Source: USDA, FAS Oilseeds: World Markets and Trade, March 10, 2015