Corn, cotton, soybeans, and wheat were down for the week. As of March 24, December corn was trading 7 ¾ cents lower than last year; November soybeans were trading 54 ¼ cents higher; December cotton was trading $0.18 cents higher; and wheat was trading 31 ¼ cents lower. Similarly, in Tennessee, September and October/November cash forward contract prices are 5 cents lower and 63 cents higher for corn and soybeans, respectively.

 
Planting is quickly approaching and with substantially higher relative prices to corn it is likely that cotton and soybean acreage will see increased acreage nationally. Relative prices are only one of the factors (all though a very important one) that producers consider when determining which crops they will plant. Other important considerations include: relative changes in the cost of production, adherence to crop rotations, expected yields, anticipated weather, and planting conditions. Typically if planting conditions are good early in the planting interval corn acreage increases. Continue reading at Tennessee Market Highlights. 

Every year I get calls from producers asking what should be their breakeven price.

While this is a number I generate monthly for profitability update reports, it really is a generic number. Each producer should have their own breakeven price number that they calculate based on their operation. While Extension coworkers and colleagues across Tennessee and other states can assist in the calculation, there will be wide variations among producers. There will be differences between operations among the basic inputs of seed, fertilizer, herbicide, insecticide, fungicide as well as fuel, repairs and labor. Each operation will have a different cost structure based on how and where inputs are purchased. The differences in input costs are really not the differences I get concerned with in calculating breakeven prices or yields. Continue reading at Southeast Farm Press.

Corn and cotton were up; soybeans and wheat were down for the week. There were limited gains and losses for the week across all four commodities as most contracts traded flat for the week.

For December corn, early week losses were more than offset by daily gains at the end of the week. Domestic planted acreage, for corn, will be closely watched. If estimates continue to indicate a reduction in corn acreage a moderate rally could occur. This week’s export sales were also a pleasant surprise for prices.

November soybeans continued to slide lower this week and are now 40 cents lower than the start of March. Soybeans continue to face headwinds due to the record South American crop, greater projected planted acreage in the U.S., and a strong USD. There is strong support in the November contract near $9.80. The USDA’s Prospective Plantings report, at the end of the month could provide some additional price volatility. Continue reading at Tennessee Market Highlights.