Marketing

[Red Steele]

not quite up to the 2.3 soybean/corn ratio but almost there right now. The markets are almost back to the low end of historical ratios for the soybean to corn spread...I always look as 2.3 as being the bottom of the normal range and 2.7 as being the top...anything over or under is a signal to grow more or less corn.

My maths shows us getting close to the 2.3 ratio once we are past the 2011 old crop months.

[noreaster]

Nov12 Beanec12 Corn are 2.138:1 using daily highs........Got a ways to go yet.....hopefully beans up, not corn down.

[Red Steele]

I am not so sure...we are nowhere near the $12 beans to $7 corn numbers we have seen in old crop at times , which is 1.72, and with the expansion of corn into the marginal soils, we may not return to a 2.3 ratio.   The market is going to encourage those areas that can grow good corn, to grow some corn on corn and it takes a sub 2.3 ratio to do that, obviously.

I am just saying that with the new crop bids not that far out of line from the normal equilibrium between corn and soybeans ,percentage wise, the market must feel relatively comfortable with the prospective mix of  new crop corn acres vs soybean acres, or....relatively uncomfortable with both soybeans and corn.