When crops reach record high acreages on both sides of the border the market should respond negatively to higher supply levels. Increased supply has to be supported with increased demand and that has been definitely the story in soybeans. Even though the November soybean futures contract (can be seen below) is off earlier highs farmers still have the potential to see reasonable prices in comparison to other crops in the rotation.
With China stocking up on US soybeans ahead of traditional pace soybeans are enjoying not having some of the nagging bearish fundamentals of corn that has made it a laggard even with the dry weather of 2017.
I spoke to Phil Shaw (@agridome), a farmer and contributor to DTN, about the soybean market what he sees in the future for soybeans. We cover the futures market, demand, and basis levels and whether Phil likes tofu salad.