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Economist cautiously optimistic on soybean run-up

 

An ag economist says the recent run-up in soybean prices is recapturing losses caused by trade uncertainty since at the beginning of April.

“What we saw this weekend was an announcement that maybe we might have some kind of resolution with China on trade issues and we’ve seen soybeans rebound strongly.”

Todd Hubbs with the University of Illinois tells Brownfield while improving trade relations between the U.S. and China has been positive for the market, no agreement has been finalized. “There’s no actual resolution to the trade issues.”

Hubbs says soybean prices have been up and down throughout April and early May, while Brazilian prices have become more competitive, which makes him cautious.  “Brazil has a large crop.  Their export prices are on par with ours so I’m really paying attention to weekly export sales numbers and weekly export inspections over the next few weeks.”

He says the USDA’s supply and demand report in May also adds to the positive price movement.

AUDIO: Interview with Todd Hubbs