Soybean market outlook murky
An agricultural economist says it’s hard to predict what the soybean market will do moving forward.
David Widmar with Ag Economic Insights tells Brownfield there are a lot of moving parts and some big question marks.
“There’s still a lot of uncertainty about where the U.S. final yields come in, we still have some unknowns how that’s going to zero in, so we have to keep an eye on that,” he said. “Of course, South America is going to go into their planting season, there’s always unknowns about their production, how much they’re going to be able to produce.”
Widmar said recent buying from China and tighter than normal U.S. stocks have allowed the soybean market to strengthen. But he says producers need weigh the probability of the market gaining or losing 50 cents.
“We can lay out the factors but then producers who need to market their grain or the buyers that need to buy their grain need to weigh all that and think about, what they think about for possible outcomes looking ahead,” he said.”
Widmar said while Brazil has started to import U.S. beans because of low stocks and high local prices, the magnitude of that export market won’t be realized for a few months.