Soybean Prices Find New Plateau

A note of caution

We must always remember that while soybean growers want high prices, buyers want low prices. There has to be a buyer to make the market work. Demand for soybeans at $13 is not going to be as good as it is at $8. Keep any commodity price too high for too long and someone will find a way to grow more of it or to use less of it. A good thing for soybeans: both of those changes may take a long time to happen.

Due to shipping and processing restraints, it’s doubtful that this level of growth can continue. This will likely be a growth market for years to come. 

 

January 2011