News

Analyst calls report supportive for soybean, corn prices

A University of Illinois commodity analyst says USDA Supply and Demand estimates are positive for soybean prices.

“It’s supportive in the short term,” said Todd Hubbs, a clinical assistant professor in agricultural commodity markets, adding that he hopes the USDA’s soybean export guess, at 2.065 billion bushels, is right.

“From some of the analysis I’ve been doing,” he said, “we really need to see the export pace pick up for that number to happen this marketing year.”

Corn exports will also need to be strong to hit the 2.225 billion bushels projected, but he says he optimistic it’ll happen.

“We’ve really seen corn exports pick up and we’re still grinding corn for ethanol at well over a million barrels a day,” said Hubbs, “so it’s really supportive for corn price.  I think the numbers look pretty good.”

The USDA projects lower corn and soybean production in Argentina because of dry weather.  That, combined with fewer planted acres of corn projected for this season, said Hubbs, “it’s all sort of building to having really supportive corn prices as we move into summer.”

AUDIO: Todd Hubbs (6 min. MP3)