By Scott Stabbe, Key Cooperative Grain Department Manager
This may be riding a dead horse but there are times when it is beneficial to repeat things; reminders help! As I get older, I can honestly say I cannot have too many reminders or notes to remember things.
I was looking at prices a year ago in both corn and beans and surprisingly enough, the current bean price is $1.60 higher than it was at this time last year. The corn market is not as fortunate since the Funds have been concentrating on the bean market and the additional Chinese bean buying has shored that market up pretty well. The current corn price is $ .30 lower than it was a year ago at this time. Yet the thing to keep in mind is revenue per acre. Ignore the per bushel price; focusing on that has a tendency to freeze a selling decision which may need to be done when you look at the revenue per acre.
Let’s just look at rough numbers on both corn and beans:
As you can see from the above chart, you would be $3.60 an acre better this year on revenue per acre for corn in spite of the lower per bushel price with a 10% yield increase; which may be low for most this year. The beans are even better at $129.30 more per acre this year over last year. This is not to say the market may go higher but it shows a better comparison from year to year than just the per bushel price. This reminds you to not be locked in on the price difference. You may be missing the whole picture!