Prices suggest possible shift to more soybeans

Because corn prices have fallen more than soybean prices, the soybean-to-corn price ratio has increased, signaling that soybeans have become relatively more profitable than corn, according to Gary Schnitkey of the department of agricultural and consumer economics at the University of Illinois.

Many analysts and farmers are speculating corn acres will decrease this year while soybean acres increase. “Acreage shifts may occur,” Schnitkey said. “However, high soybean-to-corn prices in the spring do not necessarily signal high soybean-to-corn price ratios at harvest.”

The 2014 projected price are $4.62 for corn and $11.36 for soybeans, leading to a soybean-to-corn price ratio of 2.46, Schnitkey said. This ratio averaged 2.20...

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