Harvest in the United States is starting to come to an end. Even though we are still seeing activity take place, farmers are already starting to look forward to the next production season.
One factor that always comes up at this time is the price ratio between new-crop corn and soybeans. At the present time, this ratio stands at 2.65:1.
What this means is it will take 2.65 bushels of December 2021 corn to equal the value of 1 bushel of November 2021 soybeans. Historically, this is a wide ratio and would tend to favor soybean production. As a result, it wouldn't be surprising to see corn traders start pushing futures to gain acres.
The question is how much corn futures need to be pushed and if it will even help. In states such as Iowa that suffered from the derecho wind event that flattened cornfields, we will likely see elevated soybean plantings next year.
Pushing for corn acres in this region may not benefit at all. There ...