Ag economist would not be surprised to see $16 soybeans soon
An ag economist says while there is still a lot of volatility in the market, he does not think $16 soybeans are out of the question this year.
Guy Allen with the International Grains Program at Kansas State University says last week beans fell back below $14 but the market saw some recovery early this week.
“Looking back to when we had similar stocks/use in 2013, we saw beans above $16 and I don’t think that would be a surprise.”
But, he says a lot of volatility remains.
“It’s quite volatile. Things can rally very quickly, and they drop off even faster so if you have some pricing opportunities out there you definitely want to take advantage of them.”
He says world soybean ending stocks are at 84.3 million metric tons, the lowest in five years, putting the ending stocks/use at 22%.
Allen spoke during an Illinois Double Crop Farmers Forum Tuesday hosted by the Illinois Wheat Association and Illinois Soybean Association.