written by NAFB staff LISTEN: Agribusiness Matters 6-21-16
The price of soybeans has rallied so much this season that one agricultural economist is doubtful there is much additional upside potential.
New crop soybeans are worth about two-and-half dollars more today than back in February when farmers purchased insurance to cover the price risk inherent in farming. The rise has to do with a short crop from South America, above average temperatures in the United States, and only scattered rainfall in the mid-section of the nation.
Farmers can now sell beans for about $11 a bushel for fall delivery, and that doesn’t seem too bad to University of Illinois agricultural economist Darrel Good.
Good calculates the expected June 1 Grain Stocks for soybeans near 842 million bushels. He believes there is room for a surprise in the Acreage Report. USDA’s survey of farmers in March put expectations at 82.2 million acres. This number could be higher for a couple of reasons. Soybean acreage may also exceed intentions, as a result of total acreage of spring planted crops exceeding intentions reported in March.