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marketeye
Veteran Advisor

Re: Floor Talk April 27

Farmerjoe79,

 

This floor trader has done the math on planting corn vs. soybeans. In his own words:

 

"At a 2.6 ratio… the bean to corn decision should be neutral to the farmer… and perhaps we can see a greater bean acreage number come the June final…but statistically the market will not see the crop until the June 30th report…. Most analyst are already projecting a 2 million acre increase in new crop beans, with larger double crop and some tearing  up of wheat acres switch from corn and pasture etc."

 

Mike

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Palouser
Senior Advisor

Re: Floor Talk April 27

Three more words.

 

Ending stocks lower!

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highyields
Senior Contributor

Re: Floor Talk April 27

With an early wheat harvest I see more double crop acres,  I really see no reason to swith to beans from corn acres myself, I live in nebraska but if you can raise 200 bushel dryland corn @ $5 thats $1000/ac  60 bushel beans at $14 is $840/ac  For me I'd plant corn.   I'm not "boss" other wise I would have been planting all corn the last few years on our acres even with our yields.   

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roarintiger1
Honored Advisor

Re: Floor Talk April 27

28 degrees here in NW Ohio this morning.......Not sure what it has done to the wheat......Hardly anything else up to matter though.  Mulberry trees have dead leaves.....maybe the cold will kill them!   Many guys are waiting out this cold spell and will go back to planting next week.

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rusureofit
Frequent Contributor

Re: Floor Talk April 27

Highyields... $1000 per acre corn and $840 beans and you would still plant corn?  Have you forgotten about the added costs of planting and harvesting corn?  Add $200-$300 per acre more for fertilzer, seed, drying, harvesting, hauling and storage costs, not to mention wear and tear on equipment due to added hours for handling more bushels.  If you figure in those added costs then really corn is like $700-800 per acre compared to $840 beans. 

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Farmerjoe79
Senior Contributor

Re: Floor Talk April 27

That's how my math works too.
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Nebrfarmr
Veteran Advisor

Re: Floor Talk April 27

I'm in Nebraska, where we irrigate, and on top of all that, you can also figure on irrigating soybeans about 30-50% less than corn, and with diesel over $3 a gallon, that adds up.  It costs from $10 - $30 per acre per inch of irrigation, depending on where you are, how you are setup, etc. in my area, going out of a well.  Out of the government irrigation project, they seem to allot water for a 50-50 corn-bean mix.  On a dry year, water has been rationed, and the guys who were all corn had some tough decisions to make, irrigate the whole field, one or even two less times, or irrigate the hills good, and hope the bottoms still yielded well.  Guys with half or more beans, didn't have that worry.

 

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Neil991
Contributor

Re: Floor Talk April 27

Good idea. Though, I dont think shorting all at once is a good idea. Stagger your shorts over the next few weeks. Hope to short your last bets around $16.

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