Soybean Prices Surge After Week-ending Report

The U.S. Department of Agriculture World Agricultural Supply and Demand Estimate Report came out at the end of last week, showing a surge in soybean prices, mainly due to a strong demand and weather issues in South America. Grant Kimberley, Iowa Soybean Association director of market development said, “We have seen unusually high export demand recently and that is reflected in this report. We expect demand to keep chugging along. The U.S. could soon be the only soybean store in town, and our shelves are full for now.” According to the report, Brazil’s soybean crop is down 2 million tons over earlier projections at 97 million tons. Hot, dry conditions in the center-west and northeast parts of the country reduced yields and extreme wet weather and flooding curtailed soybean production and exports in Argentina. November soybeans on the Chicago Board of Trade increased 10 cents after the report was released, trading at more than $11.60 per bushel. New-crop beans have jumped about $2.50 since early March. Experts caution, however, that a downward price correction could occur as many industry analysts believe prices have risen too high.