ADM worried about US soybean acreage

ADM's risk officer says there may not be enough soybean acres planted to meet demand this year.

Published on: May 1, 2012
While Archer Daniels Midland CEO Patricia Woertz opened up the today's quarterly earnings conference call saying she was "encouraged" by projected US corn and soy acreage, Chief Risk Officer Craig Huss later said he was "very concerned" about whether farmers will plant enough soybeans.

His latest estimate on US corn acreage is a whopping 96 million acres, though Huss points out some of that could "bleed" back into soy acreage. He added another one million acres of double-crop beans could be added after the winter wheat harvest.

Soy-supply estimates are dwindling thanks to a poor South America crop and voracious Chinese demand, but short-term supplies aren't necessarily a problem for a huge grain trader like ADM. "When you get dislocations," says Huss, "it provides opportunities."