Market News
Soybean outlook largely dependent on Chinese demand
One of the overriding themes for soybean futures during the first portion of 2010 has been the expected record South American soybean crop and the potential impact on demand for U.S. beans.
Michael Cordonnier, President of Corn and Soybean Advisor Inc., tells Brownfield that market watchers should keep an eye on China, “China, of course, has been buying very heavily. If they continue to buy heavily, well then maybe we need all these soybeans and the prices wouldn’t ease too much more, but if China shows any sign of letting up on its’ purchases, then we’ve got a lot of soybeans.”
Cordonnier adds “I think the bottom line for this spring is we’ve got new acres coming in from [a] lack of soft red winter wheat and hard red winter wheat [planting] and also some CRP acres coming in. I don’t see a need to bid up acres for either corn or soybeans, so I think the path of least resistance is downward on the prices.”
Cordonnier will be in South America for most of February, returning to the U.S. in early March.
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