A failing South American crop and strong demand from overseas are pushing soybean prices higher.
Soybeans marked another solid week of support, closing more than $0.35 higher for the week. The soybean rally began in earnest some 33 trading sessions ago, report Scott Harms, of Archer Financial services. During that seven week timeframe, May soybean values closed higher 25 of the 33 trading sessions.
Jerry Gulke, president of Gulke Group, says the bean market has been nickel and diming everywhere it can, trading similar to the NASDAQ.
Check out the daily soybean chart:
This price surge is in part due to a failing South American soybean crop, Gulke says.
"South America has less of a crop, and it keeps dropping every week. We’re going to be the only house in town as South America will run out of exportable supplies by Sept. 1 next fall."
Since it seems there will be less available soybeans for purchase, counties such as China are gobbling up what’s available now.
"China is already buying beans on us based on the November price not wanting to take the chance that we don’t plant them or they get more expensive."
Listen to Gulke's full audio analysis:
Important Report on the Horizon
Gulke says many questions about ending stocks and total crop acreage will be on hold until USDA’s March 30 Prospective Plantings and Grain Stocks reports.
Stay tuned to www.AgWeb.com
for more pre-report analysis and full coverage of the reports on March 30.
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