the corn and bean ratio. new crop now is 2.6.............. average not necessarily high even though you can get 10.26 new crop beans....... But new crop corn is at 3.95.....
We are seeing a shift to beans locally on several acres..... not huge but several..... (not so much because 10.26 is a great price) because there is a profit potential there.
Basis(-80) is poor for beans but historically has improved into summer.
Corn basis is more extreme here.... at -45 cents it is in a place we haven't seen on the ksu data base in any year( about 18 years of history).... I cant remember it being this low.since 1973.........that's the limit of my memory on corn,,,,,,,, but the memory is weak...
And the costs on producing corn are extremely high..... especially in sw corn boer, spider mite, water pumping country. Not improving much especially as fuel rises... this may be local...........
do these two farcors (basis and corn/bean ratio) determine acres planted? or are economics of losses per acre over riding the choice and driving up bean acres in spite of the c/B ratio?
What will the dakotas do?
Any thoughts on this subject...... In preparing for a bad year
