Soybeans Could Win Acres Over Corn
Apr 06, 2011
I spoke with many of my readers this week on the phone, and talked extensively on the hotline about making soybean sales over corn sales on the rally. My thoughts are somewhat simple. A couple of the largest corn acreage increases were in the Dakota's, where planting is already somewhat suspect. If the trade starts to focus on weather issues and planting delays, "soybean acres planted" this year will start to grow. You have to believe producers will quickly switch to bean acres if there is any indication that corn may falter...especially with beans trading close to $14.
Most now estimating the Dakotas already at best 10 days behind historical schedule. Remember, the USDA is counting on South Dakota to plant an additional 850,000 acres of corn and North Dakota an extra 450,000 acres of corn. We also have to be concerned that yields in the Dakota's will come in short of USDA estimates. If you look at the past few years North Dakota is averaging close to 127 bushels an acre and South Dakota is around 140 bushels per acre. As you can see both are well below the national average.
Don't let this rally slip away, take advantage with a cash sale, and hopefully you can price another 20-30% over the next 4-5 months.
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