Are You Ready For Nex Year?
"The current thinking seems to be that acreage will be shifted from corn to soybeans as the current large corn harvest will result in a substantial build-up of inventories and low corn prices in relation to soybean prices. That is certainly the current situation for old crop prices. The ratio of November 2013 soybean futures to December 2013 corn futures is near 2.9. However, planting decisions should be based on new crop prices. The current ratio of November 2014 soybean futures to December 2014 corn futures is about 2.4. New crop soybean prices are at a discount to old crop prices while new crop corn prices are at a premium to old crop prices. The lower new crop price ratio may reflect the expected acreage shift, but in fact discourages such a shift."
Issued by Darrel Good
Department of Agricultural and Consumer Economics
University of Illinois
Waddya think? Gonna switch from too much corn to not enough beans? Gonna lock in the money and grow all kindsa corn? Oooh, that would mean dealing with brokers or elevators. Gonna keep on with what you do and sell it any way you can?
It may be a long, challenging marketing year.
Re: Are You Ready For Nex Year?
Some of that junk low producing land will be put back to grass and hay . High cattle prices will entice putting that land back to raising livestock. Some of that land should never have being broken up.