The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Kevin Van Trump has over 20 years of experience in the grain and livestock industry.
Soybean bulls continue to question the $9 to $10 price tag that bears are throwing around the trade. But with China's economy in question and the "bird-flu" virus continuing to curb demand, Chinese soy imports could continue to ease. Keep in mind the USDA recently reduced their estimates for Chinese soy imports from 63MMT's down to 61MMT's. The trade believes that number is still 3-5MMT's too high.
With South America having a glut of soy supply that needs to eventually be shipped, and US producers set to plant a record large soybean crop, the world may end up going from an extremely tight supply situation to a glut of soy supply all in the blink of an eye. Just make certain you understand the price storm we could be facing if US soy ending stock eventually move north of 500 million... don't laugh just yet, it could become a reality!
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