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U.S. poised to be “only store in town” for soybeans

An analyst says U.S. farmers should benefit the most from the tightening global supply of soybeans.

Al Kluis, president of Kluis Publishing in Wayzata, Minnesota, tells Brownfield there’s been a monthly draw-down in world ending stocks since March.

“(the U.S.) has the potential for large acreage, and I think a pretty decent crop.  And we’re going to need it because of the shortfall that we’ve seen, especially out of Brazil.”

He says Brazil and Argentina appear to be exiting the global soybean market three months earlier than usual while demand remains very strong.

“The first three to four weeks of harvest in South America is going to be going to the domestic processors and domestic livestock industry down in Brazil.  So it gives us a window probably from August through February of next year where we’re like the only store in town.”

The latest USDA numbers peg world ending stocks at more than 60 million metric tons, but Kluis says the U.S. needs to have at least a 47 bushel-per-acre crop to keep up with global demand.