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Standard Grain

RSS By: Joe Vaclavik

Joseph Vaclavik is the president at Standard Grain in Chicago. Standard Grain provides futures and options brokerage to farms, feedlots, elevators, processors, end-users and traders. Visit www.standardgrain.com for more information.

 

Lower Overnight, Acreage Talk Heats Up...

Feb 07, 2012

Regarding the 2012 acreage situation, we are not sold on 94+ million acres of corn just yet. In thenew crop contracts, soybeans have gained on corn significantly in recent weeks. Still, the economics of planting corn beat soybeans hands down from a profit-per-acre perspective. In central Illinois, its estimated that farmers may profit as much as $578/acre according to a University of Illinois study. Worst case scenario, according to the study, results in $467/acre for corn versus a best-case scenario of $425/acre for soybeans. Price ratios still have the chance to change all of this; however most farmers have made or are very close to making their final decisions regarding acreage allocation. Corn-on-corn has not necessarily been a great endeavor for many producers the last 2 years. In fact, many farmers in the WCB in particular have had less than stellar experiences. Some producers we’ve talked to plan on returning to normal rotations this year because of the poor yields, which did have more to do with weather than anything. Corn acres will increase from last year; however we don’t believe that 94+ million are “in the bag” just yet.

As always, call the office with questions or concerns.

Regards,

Joe Vaclavik

(312) 462-4438

 

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