The Buzz: Buyers Seek Beans Ahead of Frost Threat
Demand from importers is putting pressure on old crop supplies.
Published: Aug 28, 2009
Soybean importers, especially China, are wasting no time booking supplies. In addition to normal demand, some of the buying appears "front loaded" due to concerns about the potential for frost to damage yields, says Farm Futures Market Analyst Arlan Suderman on this week's The Buzz video program.
It looks like USDA could be low-balling its estimate of new crop soybean estimates, something that's happened frequently in the past, according to Suderman.
Senior Editor Bryce Knorr noted that cold weather isn't good for crops that are already delayed, with weather models beginning to hint at the potential for frost at the end of the two-week period.
However, rallies may have to buck negative influence from outside markets, says Knorr, noting that rising crude oil supplies and technical selling have energy prices moving lower.
The Buzz, August 27, 2009 from Farm Futures on Vimeo.
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