High fertilizer prices push US farmers to cut corn acreage

US farmers are reducing corn acreage in favor of soybeans due to low corn prices and rising fertilizer costs. This shift in planting patterns could increase the global corn market’s dependence on US supplies, StoneX reports.

According to the company, global corn stocks increased by approximately 30 mln t following a record US corn harvest. Abundant supplies pushed international prices lower, making corn production less attractive to American farmers compared with soybeans.

Rising fertilizer prices, particularly urea, are putting additional pressure on corn production profitability. StoneX Brazil analyst Raphael Bulascoschi noted that production costs increased just as corn revenues came under pressure from low prices, providing another incentive for farmers to expand soybean acreage.

Meanwhile, the United States is becoming increasingly important to the global corn market as other major exporters face supply constraints. According to USDA figures cited by StoneX, US corn production is estimated at 401.3 mln t. At the same time, supply disruptions in the Black Sea region and growing demand for corn-based ethanol in Brazil are limiting available export supplies.

StoneX believes that even with lower US production, the global market will become more dependent on American corn supplies, which remain the main buffer for importers. Under these conditions, any further decline in US corn yields or an unexpected increase in demand could have a greater impact on global prices.

Tags: USA, sown area, corn