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Time to sell soybeans?

A market analyst says now may be a good time for farmers to sell at least part of their 2017 soybean crop.

Todd Hubbs is with the University of Illinois.

“If there’s a huge increase in soybean acres, I think that might have a negative price impact. And we’re just starting to see Brazil come online with a lot of their soybean exports this year,” says Hubbs.

And, Hubbs says additional pressure from South American crops will likely materialize.

“This year, I feel like the beans are going to be there in Brazil even though we’re having a huge issue in Argentina. We’re not going to see the production numbers out of Argentina and Brazil that we did last year,” says Hubbs.

He tells Brownfield export demand for US soybeans will likely increase.  BUT –

“It’s not going to be large enough to completely take the 420 million bushel ending stock number we see now down below 200 million, which has happened in the last few years. So I think this year is slightly different,” says Hubbs.

Hubbs says the March prospective plantings report will provide the first major indication for soybean acres this year.

Audio: Todd Hubbs, Economist, University of Illinois