With current world soybean inventory very tight, combined with a smaller forecasted South American crop, no one knows how long $13-per-bushel and higher futures prices will stick around, says Chris Hurt, Purdue University Extension agricultural economist.
In fact, extremely low global supplies point toward the potential for soybean prices to escalate even more in the near future, he adds. Especially when you factor in recent China buys of both old- and new-crop soybeans.
“From a historical perspective, $13 beans are fairly uncommon,” Hurt says. “However, during the last four and a half years, cash soybeans in central Indiana have traded in the teens or above 24 percent of the time. Most of those occurrences have happened in the spring and early summers …”