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ASA economist on upside potential
American Soybean Association economist Scott Gerlt says the timing of the soybean rally hasn’t been great for a lot of farmers but there’s still upside potential going forward, “We’re not seeing as high of a price for next spring but we’re still seeing a good price.”
Gerlt said during Commodity Classic his father is one of those farmers who is hopeful, “My dad still farms some soybeans and he’s giving me a hard time. He’s waiting for it to hit $15, he says. But he told me today he’s just about sold out. So, even if we get it there I don’t think he’ll be able to take advantage of it.”
Gerlt says there’s continued high demand for beans globally and domestically although China has slowed purchases for the time being but only because of low U.S. stocks, “And, Brazil is so delayed in their harvest, you know, they’re usually stepping in more now but it’s not the case. So, I see no reason to think that stocks number is going to ease at all.”
The USDA’s next supply and demand estimates are out March 9th.
