Soybean Yields Up in the Air
Traders will look closely at weather forecasts and crop conditions this week.
Bryce Knorr
Published: Sep 1, 2008
While the U.S. corn crop apparently endured a dry August in pretty good shape due to subsoil moisture, the fate of soybean yields is very much up in the air. August weather makes or breaks beans, and last week's rains likely saved the crop in the western half of the Midwest. From Indiana east and north it's a different story, with conditions likely to show further deterioration.
Very tight Sept. 1 supplies mean any changes now could have a significant impact. Look for traders to carefully scrutinize both forecasts and condition ratings this week, ahead of the September 12 USDA report.
Hurricanes aren't the only storm brewing in this market. Farm Futures' initial acreage survey for 2009 shows producers ready to increase plantings by almost 4 million acres next spring because beans are seen as a less risky crop than corn. Simply put, bean prices can fall more and still ensure a profit, even though corn offers greater returns on paper. As a result, 2009 could see a significant increase in ending stocks, even if demand increases.
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Tagged: soybean, farm, usda, farm futures, farmfutures
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