The outlook for US 2009 spring crop planting remains uncertain because of volatile commodity prices and input costs, US Wheat Associates said.
Erica Peterson from the North Dakota Wheat Commission, representing the US wheat industry, said that at this stage, it is unclear what changes could be made to spring crop planting patterns.US Wheat Associates, funded by the U.S. Department Of Agriculture, estimates fertilizer prices will have risen 75 per cent in 2008, fuel costs will have increased by 65 per cent, as well as rises in land rent and seed costs, all of which will squeezing farmers' profits.
However, the price of oil and fertilizer are now falling.
And while grain prices soared in the early part of the year, in recent months they have more-than halved, with Chicago Board Of Trade December wheat futures trading at US$5.54 a bushel yesterday, compared with US$12.84 a bushel in March.
"Most producers make a lot of their (planting) decisions in November-December at this point in time we usually know what will be planted," Peterson said.
Soybeans and peas had been expected to gain acreage due to needing less fertilizer, but with fertilizer prices falling in recent months, this is now uncertain, said Peterson.
The US's 2009 hard red winter crop has been mostly planted and its area was down by around 2 per cent, said Peterson.
-By Sarah McFarlane, Dow Jones Newswires