Over recent months, the beef market has been volatile, and soybeans are seeing the same price pressure. Some analysts think it could be from how the South American growing season in progressing.
“Every day we go on is another day we don’t see a significant South American weather issue develop,” said Angie Stetzer of Citizens L.L.C. “We need South America to stumble again.”
The U.S. and South America could be in for a La Nina weather pattern, and that could come late in the season for Brazil and Argentina, according to Julianne Johnston of ProFarmer.
While these issues bring prices lower, one thing that is keeping soybean demand higher is a need for soybean oil. Palm oil is seeing problems in Malaysia, so that demand is making the market move, said Naomi Blohm of Stewart-Peterson.
Are $10 soybeans fairly priced? Hear what Stetzer, Johnston, and Blohm have to say and advice on what to do with old crop corn on U.S. Farm Report above.