Tight Soybean Supplies: Pointers For Higher Price Levels
By Stock Whiz:U.S. soybean stockpiles are poised to drop to the lowest level relative to consumption since at least 1965, after the worst drought in five decades decimated crops across South America, driving China to buy more from Midwest farmers. This bodes well for U.S. soybean farmers who are placed to meet this rising demand. Reflecting the same, benchmark CBOT May soybeans gained 31 cents to $14.46-3/4 per bushel in the last week of April. The crop prices are expected to touch $16 a bushel by end of June 2012, according to Linn Group. Soybean had set price record highs of $16.3675 in 2008. We will now look at the factors that could support higher prices in this harvest season.
Falling Stock Piles
Bloomberg estimates of 31 analysts show soybean inventories declining 20% to 172 million bushels (4.68 million metric tons) before next year's harvest in the U.S. According to Roy HuckabayComplete Story »