Corn Acreage Could Increase Next Year If the Trade Dispute Continues

Tariffs between the U.S. and China have caused soybean prices to fall relative to corn prices. This depreciation brought down the U.S. soybean-corn ratio, which is currently at levels not seen since 2012. If the trade dispute is not resolved by the time farmers are deciding what to plant for 2019/20, corn plantings could rise compared to soybean plantings—which might eventually push corn prices lower as U.S. supply increases.

In Brazil, soybean prices are rising on support from the situation between the U.S. and China, and if stronger pricing continues, farmers there could decide to plant even more soybeans at the expense of corn.

Soybean-to-Corn Futures Ratio

Source: DTN
Posted by: Information Services
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