U.S. soybean growers could tell OPEC oil ministers a thing or two about the dangers of ceding market share.
The U.S. Agriculture Department’s first estimate of the 2017/18 corn and soybean stockpiles could weigh on prices for the rest of the year, adding another blow to both farmers and grain trading companies as they struggle for profits in a bear market. The government issued its third-biggest May forecast of the last 20 years for new-crop U.S. corn stocks, 2.295 billion bushels, in its supply and demand report released on Wednesday. The domestic soy stocks outlook of 480 million bushels came in as the sixth-biggest ever predicted in May.
U.S. soybean futures rose on Friday to their highest in six weeks, supported by a rally in the soyoil market as well as concerns that some of the recently seeded crop in southern growing areas will have to be re-planted, traders said. Corn and wheat futures also rose, with traders noting a round of short-covering ahead of the weekend following sharp declines on Thursday. "Rains of 1/2 inch to 1-1/2 inches fell across the Delta yesterday, delaying soybean planting and likely needing replanting in a few areas," CHS Hedging market analyst Ray Remmert said in a note to clients.