Long-term productivity of grains and oilseeds per unit of land tends to grow at a slow but steady and predictable pace year year-over-year. This despite the occasional supply shocks from unpredictable weather. However, will climate change threaten this, causing more area to be brought into production, possibly threatening sensitive environments and rainforests? Additionally, will ag commodity productivity be able to keep pace with the surge in new demand from motor fuels in an effort to reduce greenhouse gases?Key facts about acreage and production in the crops market
Acreage and Production Market Analysis
Key themes affecting acreage and production in the crops market
Commodity production is constantly looking forward and currently the market is looking at production prospects in South America, which we believe are better than market expectations with forecasts from various sources now beginning to catch up.
The production prospects and market competitiveness of South America's corn and soybeans will influence prices in the US and other northern hemisphere countries’ plantings. In addition, the US-China trade agreement has potential to significantly influence prices, however its purchasing patterns cannot be easily predicted given. Plantings in the US will start in April and will be completed by June, following that plantings are set and the question becomes what will the yield be.
The outcome of the Northern Hemisphere production can influence planting patterns in the Southern Hemisphere as well as next season’s northern hemisphere plantings.
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At IHS Markit we offer market-leading food commodities information solutions via our Food and Agricultural Commodities Market Reporting and Economics services. We are specialists in offering comprehensive data and analysis across the global agricultural commodities and processed food markets, with current, short-term and long-term solutions to support all your operational needs.
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Our Food and Agricultural Commodities Economics service is the only service in the market that provide comprehensive analysis of near-term market developments for the 12 months ahead, from market trends to supply-demand, production and price forecasts. Our acreage and production reports cover all major US crops at a national- and state-level in leading production states, and are based on monthly US crop acreage, yield and production surveys conducted at the same time as the USDA surveys and are available one week before the government reports are published to give subscribers a trading advantage.
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