US - Anhydrous ammonia prices averaged $717 per ton in Illinois according to the October 2nd edition of the Illinois Production Cost Report, reports Gary Schnitkey.
The 2014 price was higher than the 2013 price of $678 per ton.
Changes in nitrogen prices between now and spring could influence plantings of corn versus soybeans in 2015.
Projected 2015 Corn and Soybean Returns
The September 2014 version of the 2015 Crop Budgets (see here) suggests that soybeans will be more profitable than corn in all regions of Illinois.
This profitability outlook is unusual. Usually, corn is projected to be more profitable than soybeans.
Commodity prices used in the budgets are $3.80 per bushel for corn and $9.75 per bushel for soybeans. Relative changes in these prices will change the relative profits of corn versus soybeans.
Changes in input costs also could impact relative returns. Nitrogen fertilizer price often is a major factor influencing relative costs of corn and soybean production.
Decreases in nitrogen prices increase the profitability of corn versus soybeans and vice versa.
You can view the full report by clicking here.
TheCropSite News Desk