Some areas of the Corn Belt received rainfall Tuesday, but that leaves some growers wondering if those showers could make the market move higher.
According to Brian Basting, commodity research analyst for Advance Trading, Inc., farmers are going to entering the 2017-2018 crop year with “burdensome [soybean] supplies.”
“When you add in ample carry-in supply of beans to potentially what could be a record bean crop, we could feel very heavy this fall potentially in the soybean supply,” said Basting.
If demand keeps pace to where it was in the last year, Basting said there will be a floor, but he doesn’t know if it will be at $8.50 or $9.50. The market will need to build a weather premium for South America.
Hear his full thoughts on soybeans and demand on AgDay above.