The USDA Planting Intensions Survey indicates a reduction in soybean acreage in most states around the Southeast, but recent reports on over-supplies of corn and higher profit potential of soybeans may cause some growers to make late-season shifts.

Purdue University Ag Economist Chris Hurt says the market is in need of more beans and a number of growers in the Midwest, the heart of soybean production in the U.S., may be complying with significantly more acres than expected prior to May-June planting dates.

The soybean market has been buoyed by reports that soybean supplies relative to usage may be at their lowest since 1965, by the time the 2012-2013 marketing year is complete. Subsequently, soybean prices have jumped, surpassing $14 per bushel at one point in the early spring.

A major reason for the increased interest in soybeans is a projected glut in world corn supplies. Worldwide, corn production has increased by 250 million bushels and world soybean production has dropped by 575 million since the USDA planting intentions survey was completed.

From a farmer’s perspective, the change in supply, demand and price means soybeans have jumped over corn in profitability in some Midwest states.

Purdue University’s Hurst says,

“Our March crop budgets projected returns on corn $48 higher per acre than beans, but by April 10, the projected soybean return was $25 an acre higher than corn. After last week’s (mid-May) reports, soybeans’ price advantage surged to $78 an acre.