The USDA's recent reductions in final crop sizes reignited trade talk about U.S. 2004/05 planting intentions. The last season's good corn/poor soybean yields and increasing South American soy competition has fueled the popular idea of a 3- to 4-million rise in corn acres this year. However, the current bean/corn price relationship, the high cost of corn inputs (nitrogen & fuel) and the dry conditions of western areas (soybeans are traditionally a better drought performer vs. corn) seem to counter this dramatic adjustment. In the past, the current 3:1 soybean/corn price ratio normally has prompted a sizable switch to soybeans from corn if it continues into late winter.
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Initial 2004/05 Corn & Soybean Planting Ideas - 01.23.2004
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