Prices Head North, Soybean Production Moves South
As farmers across the Midwest finalize their 2011 seed purchases, the decision of whether to plant more corn or soybeans is weighing heavily on their minds. It’s going to be an interesting acreage battle as U.S. farmers get ready to plant, according to an article posted today by Wallaces Farmer.
Chad Hart, grain marketing economist for Iowa State University stated in the article, “The 2010 crop is the third largest corn harvest in U.S. history. It’s the largest soybean crop the U.S. has ever had. However, demand has built up so much on these crops that it’s putting real pressure on prices to move upward.”
Market prices for soybeans are predicted to be $13 or higher and corn is predicted to be $6 as the new calendar year approaches. As grain prices go up, input costs tend to follow. Fertilizer prices have already started rising with demand for Nitrogen, Phosphorus and Potassium (N,P and K) strong. Weather conditions allowed a lot of anhydrous ammonia to be applied across the Corn Belt this fall, indicating a lot of acres will be planted to corn next spring. With so many corn acres locked in for 2011, Hart says that some of the increase in soybean production will come from double-cropping in the southern areas of the Corn Belt and in southern states.
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Regardless of whether farmers choose to plant hybrid seed corn or high-tech soybeans, Latham® has a full lineup of top-quality products. We take pride in working with our farmer-customers to help them choose the corn and soybean products that will help position them for increased profitability in 2011.