With the dairy industry still feeling financial pain, the last thing it needs is a run-up in feed costs. Soybean prices don’t have as much upward pressure at corn, but may play follow the leader, says Bob Utterback of Utterback marketing. “The question is whether yield expectations will come to fruition,” he says. With yields in the 43 to 44 bu. range, supplies are still relatively tight and it may be prudent to get all soymeal commitments for this crop year locked in during September to Thanksgiving.
“It is true we could see at least 2 million acres of wheat planted in southern Indiana, Kentucky and into Missouri double-cropped to soybeans, but that won’t add to supplies until next fall,” he says.
“From a soybean producer standpoint, serious consideration should be given to locking in profits in the range of $100 to $150/acre over direct costs,” he says. That’s about $11 to $11.50/bu. basis the November 2011 futures contract.”