Inside: Grains & Raw Material
Is corn losing its place to soy?
For the first time in 35 years, soybean acreage in the United States (US) is likely to exceed maize acreage. A record of more than 36 million hectares of soybeans is expected next year. On the other hand, it is expected that fewer hectares of maize will be planted.
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Choose the subscription that suits youLast year it was also expected that the soy area would exceed the corn area. This was ultimately disappointing because the weather turned out more positive for corn than for soy. That will probably be different next year. Drought plays an important role in this. It is also expected to be dry for this season. Corn is less resistant to drought, which is why many growers prefer soy.
Stimulated by better prices
The currently high prices for soy also mean that growers are more likely to choose this product. The prices on the soy contracts are currently approximately 2,5 times higher than the prices on the corn contracts. However, this is not the first time, because the financial returns from soy have been better for 5 years.
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The prices of soybeans and corn are far apart.
A grower from the US puts it succinctly: "I can't pay the bills with corn." He is worried about the drought and expects several problems with sowing crops next year.
Rain Argentina
The soybean price has been on the rise for a long time. On Wednesday, February 21, the upward trend was briefly broken and the CBoT in Chicago closed slightly lower ($379,19 per tonne). This had to do with the expected rainfall in Argentina. The question is to what extent this can provide relief for soy crops. It has now been dry in the country for 4 months.
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