Soybeans Making a Last Ditch Effort to Buy Acreage
Mar 26, 2012
Once again, the new crop soybean/new crop corn ratio has reached levels not seen since before last year's planting intentions report. It is probably too late for soybeans to buy many acres, but they do seem to be making a last ditch effort to capture some much needed acreage. If there are any planting delays or any replanting to be done, soybeans would undoubtedly grab most of these acres.
Take a look at the chart below from our Firetip trading software. As you can see, the last time we saw the ratio this high was on March 1, 2011 when it hit 2.373 soybeans/corn. This ratio tumbled throughout the growing season of 2011 ultimately hitting a low of 1.991 on November 11, 2011. Since then, the ratio has rallied sharply higher as soybeans were desperately trying to ensure enough acres will be planted this year. Today, the ratio hit a 13 month high at 2.403. A poll of analysts shows that the average guess for corn acreage in Friday's report will be around 94.72 million acres and beans around 75.39 million acres.
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