Summary
Table of contents
- Due to higher profitability and demand for soy-based biofuels, US farmers are switching to larger soybean crops in 2024.
- Due to lower market prices and higher cultivation costs, a decline in maize cultivation is to be expected.
- Market trends and export demand, especially from major buyers like China, are influencing this shift in crop selection.
Shift towards soybean cultivation in the U.S.
It is expected that in 2024, U.S. farmers will plant more soybeans in response to high demand for renewable diesel and animal feed, especially as droughts affect major soy producers like Brazil and Argentina.
Corn market considerations
Despite corn surplus in 2023, farmers are considering the higher costs of corn cultivation, including the need for more fertilizers, compared to soybeans. Market trends indicate a decrease in future corn prices, making soy more profitable. The U.S. Department of Agriculture forecasts a decrease in corn acreage and an increase in soybean planting in 2024 in response to tight market conditions and fluctuating export demand.
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