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Ag economist doesn’t expect soybean strength to last

The question about soybean strength lasting throughout this year has been asked and answered by University of Illinois Ag Economist Todd Hubbs, “I am very skeptical that they’ll maintain their strength through 2018.”

Hubbs tells Brownfield Ag News that’s because of Brazil’s expected large soybean crop and several factors here in the U.S, including a decline in exports, “We need to really pick up our pace of exports. Otherwise, we might see our ending stocks numbers, 2017-’18, grow even more. The other reason is, I feel like, here in the United States, we might see an increase in planted acreage of soybeans this year.”

Hubbs does see U.S. soybean crush strengthening because of Argentina’s drought – since it is the biggest exporter of soybean meal and will likely turn to the U.S., “But, I don’t know if we’re going to be able to crush enough to make up for the weakness in exports we’ve been seeing so far in the marketing year.” Hubbs says the USDA prospective planting report will be a big factor in pricing when it comes out March 29th.

Farm Doc: Can Soybean Prices maintain recent strength through 2018?

Audio: Interview with Todd Hubbs~