A recent press release from the Iowa Soybean Association (ISA) indicates markets appears bullish for soybeans.
The release notes a recent U.S. Department of Agriculture Report “lowered beginning and ending stocks, increased export projections and bumped up domestic crush.”
According to Grant Kimberly, ISA director of market development, “we expect demand to keep chugging along. With weather concerns in South America, the U.S. could soon be the only soybean store in town, and our shelves are full.”
According to the government report, Brazil’s soybean crop is 2 million tons under the 97 million ton projection due to hot, dry weather. Argentina’s soybean crop also suffered due to extreme wet weather and flooding.
Oilseed expert John Baize of Falls Church, Virginia observed that “the report is clearly bullish, noting soybean use is higher than expected as the current marketing year winds down.”
Baize added a cautionary note that while the overall outlook is positive “a downward price correction could occur as many industry experts believe prices have risen too high.”