Soybean Prices Took off!

Soybean Prices Took off! Soybean prices took off. Soybean stocks in the US fell to their lowest level in 7 years, while soybean prices reached their highest level in the last 6 years. Soybean futures have climbed to their highest level since 2014, coupled with the boom in demand in China that reduced production due to the dry weather prevailing in South America. Soybean, wheat and corn increased with an increasing momentum on the third day. Corn has been trading at its peak from mid-2020 so far, while soybeans have gained 30 percent since June. Due to low precipitation in Brazil and Argentina, crops have just been planted or are still in development. Brazil, on the other hand, is the world's largest soybean producer. China, which alone makes 60 percent of global soybean exports, has gone on to increase its corn and soybean purchases to update its stocks and feed swine flocks affected by the African fire. “The rise in soybean markets is supported by the low supply in the US markets” Rabobank Senior Agriculture Analyst Michael Magdovitz told Bloomberg HT. Stating that the stocks of the United States at the end of 2020 were at their lowest level in the last 7 years, Magdovitz said, "Markets are concerned that dry weather may affect other major producers.”