Soybean to Corn Ratio Favoring Expanded Bean Acreage

WASHINGTON, DC – As the Pro Farmer crop tour wraps up, it’s interesting to consider the soybean to corn price ratio, as it is often used to measure the profitability of both crops. Currently, the ratio for soybeans to corn in the United States has increased which signals the relative profitability of beans over corn. According to the Economic Research Service (ERS), this ratio has averaged 2.51 over the past 20 years but is currently in the neighborhood of 2.64 to 2.71 percent – which can begin to play into farmers’ plans for planting in 2021. Since June, the futures price of corn has slipped by 2.4 percent on the expectation of a larger domestic crop while the price of soybeans has increased by 1.1 percent on a pickup in export demand.
(SOURCE: Economic Research Service)