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Since 1979, corn has shown a higher economic return per acre than soybeans, and 2002 will be no exception, according to the Kansas State University (KSU) Crops Market Update.
Corn offers a higher gross revenue than soybeans, yet it'll suffer economic losses of $70/acre vs soybean's $18/acre.
According to the KSU report, USDA's estimate for 2002 crop returns was based on: 1) Current 2002 December corn futures (adjusted for regional basis) and the soybean loan rate (since November soybean futures prices less basis were already below loan); 2) Expected fertilizer, fuel and other prices; and 3) “Trend” yields.
Corn won't be more profitable than beans until cash corn prices reach $2.65, versus the assumed soybean price of $5.25.
