Analyst: 70 Percent Chance of Seeing $12 Soybeans in 2017

June 20, 2017 09:29 AM

Soybeans are getting a late start in 2017, but there are plenty of acres yet to be expected. According to Bryan Doherty, senior market advisor of Stewart-Peterson, he expects 5 million more soybean acres than in 2016.

“Right now, reward the rallies if need be—cover them, but there’s going to be a lot of bean supply unless proven otherwise,” said Doherty.

That sentiment is shared by Brad Matthews, branch manager of Roach Ag Marketing. He says the funds have a large short position in soybeans and soybean meal.

“Meal is the leader of the complex,” said Matthews. You get your summer rally in soybeans, the weather premium short covering, you got to do something about it.”

Doherty says the funds in the managed money have been short in agriculture for a long time to be aware because the situation can get “pretty violent in a hurry.”

“The market likes to buy beans,” he said. “If I’m selling aggressively into this, make sure to have some coverage. Even though it doesn’t seem likely, [probability studies] suggest there’s a 70 percent chance we’ll see a 12 in front of beans sometime this year.”

Hear what Doherty and Matthews have to say about the cattle market and why “the party is probably over” in cattle on U.S. Farm Report above.

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Spell Check

Plains, GA
6/20/2017 08:17 PM

  Yeah kept reading the article trying to find his reasoning behind 12$ beans but for the most part all I read was reasoning behind a somewhat weak bean price. Author must have been on the tweeg when he came up with his headline. Not the first time it's happened with articles on this site. I guess 8 $ bean headline ain't something to click on

Mission, KS
6/20/2017 03:50 PM

  What a tease! You dangle $12 beans in your headline, and then write about the reasons that bean prices will be low, except "... we'll see a 12 in front of beans sometime this year." What a waste of space and time this article was. Kind of like clickbait

Saint Paul, NE
6/20/2017 08:38 PM

  I hope to at least $10 beans by the end of this yr. The people reading this probably just click on it because they wanna see the name of the person that wrote it. If I was writing something stupid like that, I sure wouldn't put my name on no it because people would say im an idiot just like all the other experts


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