Acreage debate begins for 2021
Even though the U.S. harvest season is just winding down, the trade is already starting to look forward to next year’s planting season. Soybeans rallied considerably in early September, and as a result, many farmers stated they would expand soybean plantings next year. At this time, the new-crop corn/soybean ratio has widened out to 2.72:1.
This means it takes 2.72 bushels of new-crop corn to equal the value of 1 bushel of soybeans. This ratio is the widest we have seen in the past three years.
Any ratio wider than 2.5:1 tends to favor soybean production.
Early indications are we will see next year’s plantings at 92 million corn acres and 88 million acres of soybeans.
If realized, the 88 million soybean acres would be the third largest in history and a 5% increase from last year. This opinion is based on immediate market indicators, though, and not necessarily what may take place in the future.
Several factors will come into play when actually ...