Ontario Grain Farmer December 2021/January 2022

The USDA is expected to release the prospective plantings report again in March, which can set the tone for the spring. “Corn inputs are getting much more expensive as fertilizer prices have come up,” says Simpson. “Oftentimes this would cause soybean acres to increase but the U.S. can’t afford to lose too many corn acres so it will be interesting to see how that affects both markets.” Given the drought impact on Canadian canola yields this past year, Stonehouse adds that canola may be another crop that influences soybean prices. Bigger picture, renewable diesel is likely to continue to be a hot topic. While U.S. production capacity is expected to increase significantly, the timing of new plant construction is unknown. “The faster some of these new plants come on, the more demand there will be for soybeans and soybean oil,” says Stonehouse. “It’s definitely a story to pay attention to because it will have a big impact on prices.” The opinions expressed in this article are those of the commentators. l ONTARIO GRAIN FARMER 13 DECEMBER 2021/JANUARY 2022 Price drops were also due to the fact that soybean planting and growing conditions were good and there were no major weather scares.