Between now and November, soybeans prices could perform a serious about-face.
"You’ve got a situation where we probably will see not only imports of soybeans this summer, maybe soybean meal into the U.S., to bridge that gap between old and new crop," explains Brian Basting, Advance Trading, in an interview with AgDay TV. "Having said that though, I think we’re going to plant as much as what the USDA said, maybe a bit more in soybeans here with this new-crop soybean contract holding up as high as it is. So we’re looking at a situation where the bean price going from this summer to this fall could decline dramatically."
In fact, the market already is factoring in that possibility.
"We’re already seeing that with the inverse between July futures near $15 per bushel and November futures at $12.25," Basting explains.
While the weather will play an important role in determining whether soybean prices slide or hold steady, there’s no rule saying beans must remain high.
"We’ve seen beans in double-digits for going on five years, and I think it’s something that is not written in stone and has to be that way. High prices do cure high prices. I think we’re in the process of curing the high price of beans."
Click the play button below to watch the complete agribusiness segment with Basting on AgDay:
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