Last week, the USDA released its prospective plantings report, which contained the department’s estimations as to the area that will be planted under each crop this year.

The report, which provides the intended plantings in 2017 as indicated by reports from farmers, forecasts a record 89.5m acres of soya bean will be planted this year. This area represents a significant 7% rise from last year’s planted area. The report also shows that Illinois and Iowa are expected to have the largest acreage planted under soya bean, with 10.2m and 10.1m acres, respectively.

The USDA’s hefty forecast exceeded many analysts’ predictions with the average analyst expectation lying at only 88.2m acres.

Soya bean prices this week suffered a heavy fall-out from the report, with futures in Chicago (CME) tumbling $10/t within two days after the release.

The rise in soya bean plantings has been triggered by poor 2016 prices for corn and wheat. It appears that farmers have identified soya beans as a more profitable crop, being driven by strong buying from China.

The US is the largest producer of soya beans in the world, accounting for 34% of global production. The majority of soya bean is planted in May and early June with the expected harvest date falling in late September and October of the same year.