US corn sowings would drop by more than 3m acres this year, although this will be insufficient to prevent prices of the grain falling to five-year lows according to a latest update from the US Department of Agriculture (USDA). The agency, in its first formal forecasts for crop sowings for the 2014 harvest, pegged corn plantings at 92.0m acres.
This accounts for a 3.56% drop when compared to the 95.4m acres sown last year, but still represents a historically high figure, the fourth largest since World War II. The boost to supplies looks set to depress US corn prices to an average of $3.90 a bushel in 2014-15, down $0.60 on that expected this season, and the lowest since 2009-10, according to the USDA.
For soybeans, US plantings should set an all-time high of 79.5m acres. That represents a rise of 3.0m acres in plantings year on year, and is 1.5m acres more than the USDA proposed in its long-term Baseline forecasts which were released last week but drawn from calculations made late last year. The USDA forecast soybean prices tumbling 24% to an average of $9.65 for 2014-15, again a five-year low.