Soybean prices have more upside than corn

Dec 14, 2023

Todd Hultman is picking soybeans over corn in 2023-24.

“If you want to hang onto one of them, soybeans definitely have the better bullish potential,” he told farmers attending the 2023 DTN Virtual Ag Summit.

The United States Department of Agriculture is forecasting 245 million bushels of U.S. soybean ending stocks in 2023-24.

“The case for soybeans is much different than corn,” he said.

“We do not have a big endings stocks estimate.”

He is forecasting an average spot soybean price of US$13.50 per bushel for the year, with a range of $12 to $15.

Production costs for the crop are estimated at $12.30 per bu., so there should be plenty of opportunities for profit.

U.S. farmers harvested a record 15.23 billion bushels of corn and are expected to finish the year with a robust 2.13 billion bushels.

It reminds Hultman of the 2014 through 2020 era, when spot corn prices were in the $3 to $4.50 per bu. range.

“It is not remembered very fondly by a lot of our farmers because lots of times prices were below the cost of production,” he said.

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