In the Jan. 18 Weekly Outlook, it was suggested that corn and soybean prices had the dual objectives of (1) allocating old-crop supplies so as to maintain pipeline supplies at the end of the year and (2) directing spring planting decisions.
“Specifically, these prices needed to ensure an increase in corn acreage and maintain soybean acreage at the 2010 level,” said University of Illinois economist Darrel Good.
For soybeans, the declining pace of both the domestic crush and exports, along with the prospects for a large increase in double-cropped acreage in 2011, suggested that soybean prices had increased enough by mid-January to accomplish the dual price objectives.
“That conclusion was reinforced by the improving condition of the Brazilian soybean crop and prospects for a record harvest in 2011. The USDA confirmed prospects for a record large Brazilian soybean crop last week,” he said.
Soybean prices increased another 40 cents from Jan.… Continue readingRead More »