2016 Corn and Soybean Returns Revisited04/20/2016
USDA’s Prospective Planting report released on March 31st indicated that U.S. plantings of corn in 2016 will be 6% higher than in 2015 and soybean acres will be 1% less. Since the release of this report, corn prices remained about the same while soybean prices increased, increasing the expected profitability of soybeans relative to corn. Corn and soybean returns are calculated under revised harvest delivery prices, and under two prices scenarios presented in an April 13th farmdoc daily article. Soybeans are projected more profitable than corn. Three explanations on why corn acres are increasing are provided. Over time, reducing corn and increasing soybeans in rotations should be considered if prices remain at current levels.