Soybean Prices Soar--Top $15/Bushel
Tuesday, July 3rd, 2012
The prices for the old crop July contract for soybeans soared 50 cents per bushel to $15.16 Friday on the Chicago Board of Trade, on fears of tight supplies.
The new crop November contract was strong as well, rising 24 cents per bushel to $14.27.
The U.S. Department of Agriculture said Friday that despite an 8 percent gain in soybean stocks in storage that soybean disappearance, or sales, of 707 million bushels for May was the second largest disappearance on record.
Analysts have worried about soybean stocks with the 5 percent jump in corn acres planted this year, compared to jlust a 1 percent increase in soybean acres to 76.1 million acres nationally. Iowa's 8.8 million soybean acres is the lowest in the state since 2001.
Dean Coleman of Humboldt, presidentof the Iowa Soybean Association, said "clearly, world demand remains strong, particularly from China. We would not be surprised to see exports increased further, which will draw down the stocks more than the USDA is estimating. With the short South American crop and weather concerns for the U.S., this fall will be tight."
Sal Gilbertie, president of Teucruim, a publicly-traded grain investment fund, said "soybeans are going to be the story of the summer. Everybody has worried about corn, with the dry and hot weather. But soybean stocks are extremely tight right now."
Des Moines Register