Consultant suggests $20 soybeans still possible
A consultant in the oilseed industry says $20 soybeans are still a possibility despite a recent decline in prices.
John Baize has worked in the soybean industry for more than four decades and says if a large part of the Midwest has poor weather in August, the market could take off.
“And right now we’ve got really hot weather going across the Midwest, if it sets in and we don’t get rain for the next six weeks, that soybean crop is not going to be 52 bushels an acre, it’s going to be way down in the 40’s somewhere.”
He tells Brownfield that combined with tight global stocks could set off another rally.
“The supply that’s available in the world that’s exportable from producing countries is relatively small, so it would not take a lot to trigger off a big run on prices upward. And you’re starting at a really high price already.”
But even with adverse weather, he suggests the likelihood of $20 soybeans is still small.
Brownfield interviewed Baize at the Future of Soybean Retreat in Brainerd, Minnesota, hosted by the Minnesota Soybean Research and Promotion Council.