Soybean prices are the highest they've been in the last 35 years, and the soybean-corn price ratio has gone up sharply from last spring when farmers were making planting decisions. Because of that, USDA Chief Economist Keith Collins says they expect a shift of acres from corn to soybeans.
"We planted nearly 64 million acres of soybeans in 2007," Collins says. "We think we could be in the neighborhood of 70 million acres of soybeans in 2008."
Collins says the worldwide demand for soybeans, oil and meal is so strong that the increased production will not send prices down; rather sales will increase, stocks will stay at very low levels meaning very strong prices for 2008 crop soybeans.