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Forward marketing soybeans still not a bad idea

A University of Missouri ag economist says farmers should continue considering forward marketing soybeans even after steep losses following USDA’s recent supply and demand report.

Ben Brown tells Brownfield growers need to think about what price it will take to cover higher input costs for next year after losing about a dollar on soybean futures since August.

“If we can still make money, I would encourage you to look at marketing some grain for 2022 just because we are facing and will face higher cost categories for the 2022 crop,” he said.

Brown expects soybeans to continue downward movement with the possibility of still larger production totals, China shutting down crush facilities because of energy shortages and global slowing of fertilizer production pushing more acres to be planted in soybeans next year.

“That’s a lot of bearish news on one hand,” Brown said. “On the other hand, we’ve got some drought and dryness starting to show up in South America, especially Argentina, and that could create some bullish factors to move up. But right now, it’s the bearish tint to the market that’s outweighing and overshadowing the bullish features of South America.”

Soybeans saw increased estimates for total U.S. production, average yield and new crop ending stocks in Tuesday’s USDA supply and demand report.