Soybean prices were definitely a topic of discussion. Soybeans definitely look like a true money maker this season in Ontario with even higher prices to come potentially. When you compare corn and soybeans right now soybeans feel bullish and corn has a higher probability of being bearish. Even though corn is king, this pricing action will impact growers flexible acres.
Corn planting in the US has started in some areas with the mild US weather right now. At the London Farm Show several farmers mentioned to me that they really hope that the US starts planting corn and doesn’t stop because it will reduce the soybean acreage. If the soybean acreage is lower in a strong demand market this could even mean higher prices for 2012 soybean prices. The cost of production on production is cheaper than corn and with the rumors circulating on corn seed shortages, many Ontario farmers are more than comfortable with planting more soybeans this spring. This is especially true if the profit margin on soybeans is higher than corn leading into planting.
As one Ontario farmers said to me, “keep planting America, keep planting…”