The upcoming soybean planting season and huge world stockpile continue to worry from the agriculture sector even as some try to find the upside. KTIC has posted a story by the Iowa Soybean Association explaining their view of the current situation and why they’re hopeful for a turnaround in the future.
As we reported last week, for the first time, 18 out of 31 states will be planting more soybeans than corn — two more states than last year. Not only that, but those states will be dedicating 16.7 million more acres to soybeans than corn. This news, along with the large domestic and global supplies has caused soybean futures to fall a dollar below where they were last year. But ISA President Rolland Schnell is hopeful for the future. Though he does not see making a profit this year the continued rise in the middle class across the globe means more people wanting more meat and higher demands for soybeans.
Demand for soybeans is still strong, there are just too many stockpiled after years of large harvests, but reports still show a strong demand from China and other Asian countries this upcoming year, and the quality of the crop the U.S. produces will hopefully propel us ahead of our competitors.
