Amid concerns over Midwest flooding, a delayed harvest and relentless demand from China, November soybeans rose 6.5 cents in early trading Monday to $9.72 ½.
Analysts said the uptick came as supplies tightened and precipitation was delaying maturity of new crop soybeans.
“The crop isn’t maturing fast enough to get enough beans moved that need to be heading oversees, and there are hardly any old beans for sale,” explains Andrew Shissler, a partner at S & W Trading, in Downers Grove, Ill.
“The flooding doesn’t help either,” adds Shissler. “It’s been wet and is going to stay wet.”
Another factor pushing up prices was the return of Dalian futures trading after a China holiday, with January beans up about 47 vents per bushel overnight, according to Larry Shonkwiler, of Advance Trading, in Bloomington, Ill.
“The up-coming forecast is probably a little wetter than the market would like, especially if September exports are top the record 100 mbu mark, as expected,” he said.
Soybean acreage in South America is expected to shrink, adding to possibilities of a shortfall given soaring demand, according to DuWayne Bosse, of Bolt Marketing, in Britton, S.D.
According to USDA estimates, American farmers will produce 330 million bushels of soybeans this fall, while Brazil will harvest 103 million bushels, and Argentina 57 million bushels.
“If this harvest gets wetter and wetter, and we can’t get the beans out, we already know that the whole world is waiting for our beans right now, “ Bosse said in an interview on AgDay.
The majority of growers Bosse talks to are reporting a lag in maturity of the soybean crop because of wetness, he added.