Cash Strategist 12/8/21
Author
Published
12/6/2021
One of the reoccurring stories in the market recently has been supply chain issues. The most concern is what it means for U.S. input supplies, mainly fertilizer.
There are already thoughts this will cause a shift in acreage next year, which is possible. Another concern is that even in areas where there are inputs, the cost for many farmers has more than doubled from a year ago.
This input situation has some analysts believing we will see a considerable shift away from corn production in the United States this year. There are already thoughts this will cause corn acres to decline by 3 million from last year.
The immediate reaction is this will cause an equal increase to soybean plantings, but that isn't necessarily correct. We may see corn acres decline, but acres shift to crops with lower costs of production, especially in the fringe regions. This could easily lead to elevated wheat plantings in the Plains and cotton...
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