In the News - February 2012
Corn, soybeans, sorghum may muscle into Ark cotton, rice acres
 Download article
Fast Facts
- Corn, soybeans move higher, could sway farmers to move out of cotton, rice
- Rice prices sag as U.S. exports lag
JONESBORO, Ark. – Despite small price gains last week, cotton may still lose acres to corn and grain sorghum this growing season, said Scott Stiles, extension economist for the University of Arkansas System Division of Agriculture.
Now is the time “producers are considering the market outlook and their planting options for 2012,” he said. Stiles has been racking up the mileage this spring, visiting with producers and providing the current market outlook.
“The corn prices, and milo to a lesser extent, are expected to draw some acres away from cotton,” he said. “This will be more pronounced in the south half of the state.
“I don't sense from the northeast Arkansas growers that they are expanding corn acres,” Stiles said. “Seems they are going to stick with cotton.”
September corn gained a dime last week, putting it back up above $6. November soybeans were up 15 cents, closing above the $12.25-$12.30 level. "That price level has served as technical resistance in recent weeks," he said.
“Cotton made some gains too, picking up 179 points in the December contract and closed above 95 cents, which has been ceiling on it lately,” Stiles said.
The only commodity not making gains last week was rice.
“U.S. rice exports are lagging well behind last year,” he said, including no sales activity to Iraq.
Stiles said private analysts see Arkansas increasing corn and soybean acres by 7 and 2 percent respectively. Two weeks ago, the expectation was that cotton would be down 7 percent and rice down 4 percent.
“After last week’s futures price action, I'd say rice could lose more acres and cotton could gain a few back,” he said. “Considering average irrigated yields, corn has the edge on cotton and many growers argue that corn is much easier to manage. However, it looks like cotton has the economic edge on rice and soybeans.”
The next USDA Supply/Demand report is Thursday, Feb. 9.
For more information on crop production, visit www.uaex.edu or contact your local county agent.
The Cooperative Extension Service is part of the University of Arkansas System Division of Agriculture and offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, marital or veteran status, or any other legally protected status, and is an Affirmative Action/Equal Opportunity Employer.
February 6, 2012
By The Cooperative Extension Service
U of A System Division of Agriculture
Media Contact: Mary Hightower
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2126
mhightower@uaex.edu
Related Links
Request an Interview
|
