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
- World corn and soybean production have each increased about 30% over last 10 years, world wheat production increased 20%, and technology continues to push production efficiencies around the world
- The US is the largest corn exporter, but due to growth in Russia and South America corn production US could soon be the world’s residual supplier.
- Brazil is the largest soybean exporter at over 75 million tonnes annually, accounting for half of the world soybean trade, 50 percent% than US exports.
- China is the world’s largest soybean importer, purchasing about one-quarter of the world’s soybean production each year. China’s soybean imports have doubled in the last 10 years, with nearly 100 million tonnes expected to be imported in the next marketing year.
- Acreage and production is affected by price, with prices at time of planting determining changes in planting patterns, then it influences prices when assessing productivity compared with market expectations.
