Soybean Acreage Expected to Shrink Next Year

By CnAgri2012-11-07 11:21:53 Print

Despite higher soybean price this year than last year, comparatively low returns from soybean production may cause farmers to cut soybean acreage next year to make way for corn.

    The current soybean/corn price ratio is 1.8 ~ 1.9, below the normal level of 2.2 ~ 2.3. In Heilongjiang, soybean production cost is RMB4,650/hectare and soybean yield is 2,250kg/hectare. At the current procurement price, the returns from soybeans is RMB5,700/hectare in the province, far below the returns of RMB10,500/MT from corn production.

From “China Oil and Oilseeds Market Weekly Report”