Old Crop Soybean Demand Stays Strong
South America remains a question mark.
Bryce Knorr
Published: Jul 26, 2009
While the cash market for old crop soybeans broke again last week, demand for remaining supplies does not appear to be fading. China continues to buy old crop soybeans, and Census crush for June also was stronger than expected, keeping the market guessing about just how tight stocks really are.
That's not the only question in the trade. USDA's decision to resurvey corn acreage raised the question of soybean plantings as well. Will they ultimately turn out to be higher, or will fewer double crop acres get planted due to the show harvest of the winter wheat crop in some areas?
Yields also remain up in the air, though crop ratings are above normal. Just a small reduction from normal yields, say 10%, would tighten stocks considerably, setting up a potentially explosive situation.
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Tagged: soybeans, soybean, usda, wheat, farmfutures
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