Soybean Prices Soar After USDA Report

Immediately following the release of the U.S. Department of Agriculture Acreage and Grain Stocks report, soybean prices soared on the board of trade. November beans closed 41 cents higher at more than $11.53 per bushel. The Iowa Soybean Association says that strong demand and adverse weather in South America continue to fuel the bullish sentiments in the market, providing a price rally of about $3 since February. Chad Hart, an Iowa State University Extension and Outreach grain economist, said this is a much stronger and better run than he and most other analysts had expected and he is glad that a good share of producers are taking advantage of it. Iowa farmers have planted 9.7 million acres of soybeans this year, 150,000 less than last year. Farmers are holding on to soybeans across the nation with stocks in all positions clocking in at 870 million bushels, which is up 39 percent from last year. Iowa farmers are following suit with 183 million bushels in storage, about 60 million more than last year. Even though the report is considered positive, other factors could still impact soybean’s future value. With more than half of the state already hot and dry, this continued trend in the long-term weather forecast has experts saying it could have a major impact on future prices and create sensitivity in the market. However, they say the outlook is still bullish.