LUBBOCK, TX – Soybean prices have remained comparatively resilient despite USDA projecting a record crop, with strong domestic and export demand helping absorb larger supplies, according to commodity analyst Al Kluis.
Kluis, with Kluis Commodity Advisors, told the Agribusiness Report that soybean futures near $13 per bushel remain notable given the size of the crop. He said revenue per acre could approach record levels in strong-yielding areas, although rising costs continue limiting profit.
Kluis pointed to expanding domestic crush capacity as a major source of demand. New plants across the western Corn Belt are processing more soybeans for oil used in biofuels while soybean meal moves into domestic livestock channels and export markets.
He said meal is moving to the West Coast and overseas markets including the Philippines, Vietnam and Taiwan. Kluis said several newer crush plants have been profitable.
Continued demand from crushers, livestock feeders and exporters could help support prices, but producers still face uncertainty from high costs and future South American production.
Farm-Level Takeaway: Strong crush and export demand are helping support soybean prices even as producers prepare for a record crop.