USA: Plant more soybeans or corn?

Published 2023년 3월 13일

Tridge summary

The article highlights the competitive profit margins for both corn and soybeans among US growers in 2023, with corn currently showing a slight edge due to higher prices and lower expected production costs, despite soybeans traditionally having a higher planting preference due to market dynamics. The USDA's upcoming forecasts for supply and demand will be crucial in determining the trends in acreage for these crops. Over the past two decades, the USDA has made more revisions in its soybean projections, leading to more fluctuations in planted areas compared to corn, but the recent shift favoring corn could potentially tip the balance in its favor. These developments are expected to influence the pricing decisions not only for US producers but also for Brazilian producers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Both crops look profitable for US growers in 2023, at least based on their current and future prices and expected average production costs. Decisions on what to prioritize begin when the USDA releases updated 2023 forecasts for supply and demand for these commodities at its annual Agricultural Outlook Forum. See the analysis of the A to Z Agriculture Channel The profit margin with corn So far, corn appears to have a slight advantage over soybeans based on recent prices and USDA cost estimates made in December. This isn't a huge difference, but projected profits are an important factor influencing whether growers plant more or less of any given crop. Traders tend to focus on another metric, one they can actually buy and sell for speculation: Farmers tend to increase soybean plantings when the market is higher, in favor of soybeans. Corn benefits when the arithmetic is lower, indicating that corn prices are above normal relative to soybeans. The long-term average for the ratio is ...

Source: Agrolink