Soybean Corn Price Ratio

The value of corn has lost on the value of soybeans this spring. The reduction in demand for corn as fuel stock and the expectation of a surplus in new crop corn supplies   has weighed on corn prices. Both in absolute terms and relative to soybeans.

Farmers could reduce the number of acres devoted to corn this spring compared to the March survey, switching to soybeans, another crop, or just using marginal land as pasture. 

Barring a major weather event it is likely the  soybean/corn price ratio will trade in the upper quarter of historical experience through fall harvest.