Market Commentary

Soybean Market Outlook
By David Reinbott
University of Missouri Extension Service

July 21, 2015

Soybean prices have also rallied on better demand prospects, uncertainty of acres and yields, and short covering by commodity funds.   New crop ending stocks are projected at 425 million bushels, down 50 million bushels from last month.  However if acres are trimmed 1.0 million and the yield is cut 1.0 bushel to 45.0,  ending stocks drop below 300 million bushels.

Technically, November soybean futures has resistance at $10.40 and support at $9.80.  Just as in corn, market is in a sideways to lower trend for the next few weeks unless some bullish news enters the market.  For soybean you need to sell at harvest making some sales may not be a bad idea or buy some put options to establish a price floor.

 

Grain Sorghum Outlook
By Mark Welch
Texas A&M AgriLife Extension

August 17, 2015

The grain sorghum ending stock estimate increased despite a 55 million bushel increase in use, driven primarily by increased exports. Sorghum production is forecast at 573 million bushels, up 68 million bushels from July on an increase in average yield, from 65 bushels per acre to 74.6, a 15% increase. If realized, it would set a new record high for U.S. sorghum yields, beating 2007’s 73.2 bushels per acre. As with corn, if the current season average farm price holds, the PLC payment for 2015/16 would be $0.05 per bushel.

 

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