The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Justin is the Vice President of KIS Futures., an independent brokerage located in Oklahoma City. He focuses on agriculture and energy price risk management. Justin has been featured in agriculture trade publications, regional radio shows, and national newspapers.
Friday morning's USDA prospective plantings report has been one of the most talked about reports in the past decade.
My numbers are slightly different that the "trade estimate" averages. The main issue I see with these reports are they are based on 85,000 farmer surveys over the first 2 weeks of March. A lot can and has changed over the past two weeks that could alter what a farmer is going to plant.
The ratio of new crop corn to new crop soybeans is traditionally around 2.3. When soybeans are 2.3 times the price of corn, there is little price incentive to plant more of either crop. The current spread is 2.47, meaning there is a slight incentive to plant soybeans instead of corn. This may in fact increase the amount of acres of soybeans and lower the amount of corn planted.
Justin Lewis's Stocks Estimates
Justin R. Lewis, M.B.A.
V.P. - KIS Futures, Inc
Direct: (877) 431-9805
Cell: (580) 335-1602
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