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Analyst: Demand will carry the day for soybeans

Trade disruptions and heavy production have put pressure on soybean prices, but demand growth will help maintain balance.

An oilseeds analyst says this year’s harvest, combined with a problem free 2019 South American growing season, will result in huge stocks of soybeans.

“We’re going have a lot more soybeans than we’re probably be able to move,” said John Baize, pointing out that USDA projections of 785 million bushels of stored U.S. soybeans a year from now will by far be the most in history.  That could steer growers from soybeans to corn in 2019, “but, not necessarily,” Baize told Brownfield Ag News.

Corn won’t be very profitable, according to Baize, and soybeans can be planted for less money.

“The good thing is we’re growing global demand for soybeans by about 14 to 15 million tons a year,” said Baize.  “To put that in perspective, 15 million tons is about equal to the total production of Iowa.”

AUDIO: John Baize (9 min. MP3)