News

Soybean and corn revenue projections slightly improved

Average prices for corn and soybeans are higher than in recent years, resulting in a brighter crop revenue picture for 2018.

“USDA is being a bit more optimistic about our prices,” Gary Schnitkey, a farm management specialist at the University of Illinois told Brownfield Ag News Thursday.  Corn so far this marketing year averages $3.80 a bushel, according to data from the USDA Office of the Chief Economist.  The yield projection of 174 bushels an acre would result in revenue of $661 per acre, but Schnitkey says a lot can happen during the growing season.

“A yield shortfall, a couple bushels below what USDA is predicting, we could see corn prices above $4,” said Schnitkey.

The average soybean price is $10, which is higher than the last couple of years because the soybean yield projection of 48.5 bushels an acre is below yields of the last two years.

“That $10 price is factoring in a return to trendline yields,” he said.

If the price and yields hold, Schnitkey says it means soybean revenue of $485 per acre.

“Obviously a lot of that depends yet on what happens and what the growing season brings to us,” said Schnitkey, “and also if anything changes in our export demand and domestic use.”

AUDIO: Gary Schnitkey (8 min. MP3)