Do current price ratios favor soybeans over corn?
January 14, 2021 By Mark Dorenkamp Filed Under: Crops, News
A market analyst hesitates to say current price ratios favor soybeans over corn.
Karl Setzer with AgriVisor says it’s right on the edge.
“The ratio between December ’21 corn and November ’21 soybeans right now is about 2.6 to 1. And what that means is it takes 2.6 bushels of Dec corn to equal 1 bushel of November soybeans in value.”
He tells Brownfield if the ratio is around 2.5 nobody is going to switch acres, but above that favors soybeans.
“But that’s probably going to have to get out closer to 2.9, if not 3 to 1 to really sway enough acres this year.”
Setzer says that’s because there is good local demand for corn, and most producers prefer planting corn.
“It’s just a fact, that’s why we hear that saying ‘corn is king.”
He says November soybean futures will need to climb considerably to sway a significant amount of acres away from corn.
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