A spring grain rally has prompted US farmers to plant more corn and soyabeans, raising the prospect of a supply deluge at the end of the year.
A record 83.7m acres (33.9m hectares) of soyabeans will be planted this year, with farmers seeding the most ever in states such as Minnesota, North Dakota and Ohio, the government said on Thursday. Corn acreage will total 94.1m acres, up 7 per cent from last year and the fourth highest in US history.
The planting spree comes despite relatively low grain prices that have pinched farmers’ incomes. US crop receipts are estimated at $190bn this year, down a fourth straight year from $232bn in 2012.
But a sharp, fleeting rally brought on by a worsening outlook for South American crops happened as farmers started their spring planting campaign. It spurred them to sow much more corn and soyabeans than they had…