February 24, 2011

Commodity Price Changes and Corn-Minus-Soybean Returns

Even with recent deceases in commodity prices, corn is still projected to be more profitable than soybeans. Current cash bids for fall delivery are about $5.45 per bushel for corn and $12.65 for soybeans. Corn-minus-soybean returns measure return differences. Positive numbers indicate corn is projected to be more profitable than soybeans. Using the above commodity prices, corn-minus-soybean returns are projected at $194 per acre in northern Illinois, $166 per acre for high-productivity farmland in central Illinois, $157 per acre for low-productivity farmland in central Illinois, and $123 per acre in southern Illinois.

In northern and central Illinois, the 2011 projected corn-minus-soybean returns are over $100 above the 2005-2010 average. In southern Illinois, 2011 projected corn-minus-soybean returns are over $60 above the 2005-2010 average.

Issued by Gary Schnitkey
Department of Agricultural and Consumer Economics
University of Illinois

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