Agriculture economic home set

The data provided shows that the production of corn has increased over time informed by favorable market prices over the last few years. The reason for this seems to be an increase in the demand for the corn driven by the increasing ethanol production, feed FSI Non-fuel and the expanding export markets. How the local market price in the use market seems to have decreased from $6.89 to $3.60 a trend that shows a constant decline. The corn balance sheet shows that there was a slight improvement in corn yield for the, with a similar improvement in the domestic usage.  On the other hand, the trend in the soya beans production shows a steady growth a slight decline in production being offset by a following rise in next harvest year. In addition , the world harvest for soya beans have increased constantly since the year 2005 only stagnating in the period between 2009 and 2011. The increase in production is showed to have continued after the rise and has not experienced another stagnation to date.

In comparison with corn, soya bean’s stock-to-use ration is seen to be increasing since 2011 while corn stage usage ratio predictability is very uncertain. This means that with wheat production, which in some markets is used as a substitute for corn, being constantly high there demand is likely to remain low for the corn. The declining stocks-to-use ratio for soybeans in the world market indicates a better market as compared to corn.  Trading in soya beans is likely to bring in more returns than in corn, considering the above market analysis. Entering into a soybeans contract futures is the better option.