Soybean markets move higher on supply scares
A market analyst says soybean markets are moving higher, responding to USDA’s report that says fewer acres were planted in the United States this year.
Richard Brock with Brock Associates says soybean supplies will need to be rationed.
“We’ll have to cut way back on exports and crush will likely have to be cut down, but not much can be cut,” he says. “The soybean crop, almost everywhere, is behind. At this stage, farmers can count on higher prices in the beans and corn is just the opposite.”
Brock says in two days, the November soybean market jumped more than $1 higher. He says grain traders are still in shock.
“Last week, we were doing seminars and we had a lot of seed people in the audience from across the Midwest. And no one mentioned any farmers were making such a shift from soybeans to corn and you would have seen it in the seed industry.”
He says most of the shift away from soybean acres came in Illinois, Iowa and North Dakota.
And Brock says he is expecting the soybean market to remain bullish.