This just in! The USDA's Risk Management Agency now has its crop prices for this year's spring planting season. The final projected crop insurance prices for 2018 coverage are now in.
As explained by the American Farm Bureau, "Spring prices for corn, cotton and soybeans are determined by averaging the new-crop futures contract settlement prices (December for corn, November for soybeans and December for cotton) during the month-long February price discovery period. Following the spring price discovery period, farmers may purchase revenue protection policies that provide insurance against yield declines. In the event of a crop loss, a farmer purchasing a harvest price option policy would be indemnified at the higher of the spring planting price or the price during harvest. Farmers without the harvest price option would be indemnified at the spring planting price."
For Dec. 18 corn= $3.95 vs. $3.96 in 2017
For Nov. 18 soybeans= $10.166, down 3 cents from last year.
What say you?
As a side note, "The soybean-to-corn spring price ratio remains at 2.57, in line with last year and well above the 20-year average of 2.25," AFB stated Thursday.
My comments: So, is the market trying to buy more bean acres?
Mike
