Cash Strategist 1-10-2024
Published
1/8/2024
While much of the market focus over the last few months has been centered on South America, spring planting in the U.S. is right around the corner.
Prices will continue to be driven by crop sizes out of Brazil and Argentina, but it’s the relation between soybean prices and corn prices that needs monitoring the next few months.
The corn/soybean ratio often hovers in the 2.5-to-1 area. In other words, soybean prices are roughly 2.5 times the price of corn the majority of the time.
In the last 10 years, the ratio has only been above 3 five times and below 2 three times.
Movement in this relationship is usually determined by simple supply and demand. When soybean prices get too high relative to corn, producers will switch acres to plant more soybeans, thereby increasing the...
Members Only Content
Join Iowa Farm Bureau or login to view all members only content and receive other member benefits.