jcesar2015 | PIXABAY.com
A new report, The Mighty US Crop Markets Through 2030, from RaboResearch summarizes the long-term outlook for three U.S. crops: corn, soybeans and wheat.
The report identifies potential changes in trends that may have long-term consequences for the U.S. grain and oilseed sector from the 2023/24 season through 2029/30.
- In the 2023/24 season, corn is expected to remain the top crop, although RaboResearch anticipates soybeans may surpass it in the near future to meet increasing soybean oil demand for renewable diesel.
- Farmgate prices are expected to ease from 2021 to mid-2022 highs due to several factors, including Russia’s invasion of Ukraine. The future price trend may move higher in the coming cycles, driven primarily by new soybean crushing demand and the fight for acres.
- The gradual expansion of new soybean crushing plants could represent an additional 600m+ bushels by 2026/27 if all the announced crushing facilities become operational.
- In the years to come, domestic demand’s share of total use of corn, soybeans, and wheat should continue to show positive growth. Combined domestic demand for the three major crops is showing an increase when compared to exports. Through the end of the decade, stock levels should marginally recover but remain relatively low compared to historical levels.
- The U.S. share of global export markets will likely decrease due to growing domestic demand, especially for soybeans.
