Why are soybean futures dropping? (2024)

Why are soybean futures dropping?

Soybean futures set one-month lows in Wednesday's trading and closed just above session lows amid stiff export sales competition from Brazil a day ahead of the USDA's monthly supply-and-demand report that was expected to show 2023-24 US soybean ending stocks at 317 million bus compared with 315 million in March, and ...

What is the futures forecast for soybeans?

Soybeans is expected to trade at 1138.87 USd/BU by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1078.45 in 12 months time. Soybeans Futures are available for Trading in The Chicago Board of Trade (CBOT® ).

What is the projected price of soybeans in 2024?

In 2024, corn is projected at $4.66 per bushel, which is a 27% decrease from 2023. Soybeans are projected at $11.55 per bushel, a 16% decrease in the same period.

What is the prediction for soybeans?

With forecast yields up slightly at 49.9 bushels per acre, the U.S. soybean crop was estimated to be 4.13 billion bushels, down just 3.3% from 2022.

What will soybean prices be this fall?

Similarly, soybeans, which still had high futures prices at harvest, fell from a season average price of $14.30 in 2022/23 to a projected season average of $12.65 in 2023/24 and are projected to decline further to a season average of $11.20 in 2024/25.

Are soybean prices expected to rise?

In short, Mickey sees a “tough” year ahead for both corn and soybean prices. Prices are projected down in 2024 for both commodities.

Should I sell my soybeans now?

Sell Soybeans Now

Soybean export demand improved as the 2023/24 marketing year started, and expanded crush capacity helped domestic demand set new records late in the old-crop marketing year.

What are the predictions for corn and soybean market?

USDA's projections closely align with this. USDA forecasts 91 million acres of corn and 87.5 million acres of soybean plantings. Trend-line yields for 2024 point to 181 bushels per acre for corn and 52 bushels for soybeans – yields that, if realized, would result in large crops and a need for increased demand.

What is the expected yield for soybeans per acre?

USDA's soybean yield estimate of 51.9 bushels per acre increases the supply estimate for the 2022/23 marketing year in the August WASDE, which adjusts soybean production to 4.53 billion bushels, increasing 26 million bushels, or less than 1%, compared to the overall soybean production estimate reported in the July ...

What drives soybean prices?

As with other agricultural commodities, prices for corn and soybeans fluctuate because of several complex factors, including adverse regional weather conditions, major wars, oil prices, global currency fluctuations, and market speculation.

Who buys the most soybeans?

Meanwhile, the United States' shipments declined 14% to 1,789 million bushels in the same period. The United States and Brazil are major competitors and together supply over 80% of soybean global exports, while China accounts for about 60% of total soybean imports.

Is it good to invest in soybeans?

Transparency Market Research predicts that the value of the global soybean market will grow from $146.23 billion to $215.746 billion between 2017 and 2025. As developing economies such as China grow wealthier, more and more people will likely increase their meat consumption and turn to healthier food.

What are soybeans selling for today?

Why did soybean prices drop?

Soybean futures declined after the USDA in its monthly World Agricultural Supply and Demand Estimates report estimated domestic soybean stocks at the high end of traders' expectations and pegged Brazilian soybean production at 155 million tonnes versus the 146.522 million tonnes projected by Brazilian crop agency Conab ...

How much will corn and bean prices be in 2024?

Grain prices have dropped dramatically in the last year. Current prices for 2024 new crop delivery are around $4.15/bu for corn, $11.00/bu for soybeans (2/23/23). This is a decrease of around $1.00/bu for corn and $1.75/bu for soybeans compared to what these prices were expected one year ago (see Figure 1).

What is the grain price prediction for 2024?

The season-average farm price is forecast at $6 per bushel, down $1.20 from 2023-24. "The resulting average farm price of $6.00 for 2024-25 reflects the current state of depressed wheat prices worldwide and this report reinforces another tough year ahead for wheat growers," Hultman said.

When should I sell my soybeans?

Longtime readers know I make seasonal sale recommendations. This simple concept works well. I suggest making corn and soy-bean sales in May and June while avoiding sales from August through October. This has worked in 30 of the past 40 years.

How much does it cost to raise an acre of soybeans?

For soybeans, USDA anticipates it will cost an average of $612.79 to raise an acre in 2024, $8.68 less than in 2023. Hultman said the operating costs of growing soybeans dropped in 2023, thanks to lower fertilizer, seed, chemical and fuel costs.

How much do farmers get paid for soybeans?

With November 2023 soybean futures trading at $13.81 per bushel, an expected yield of 65 bushels would result in a producer return of $34 per acre. A producer would need a yield of 63 bushels of soybeans to break even at $13.81.

How many bushels per acre is good for soybeans?

Achieving all-farm average yields of 100 bushels per acre could be within growers' sights if they ratchet up management. Better management includes variety selection, data use, weed control, early planting and precise planting.

Do soybean farmers make money?

Corn, soybeans account for more than half of the 2022 U.S. crop cash receipts. Crop cash receipts totaled $278.2 billion in calendar year 2022. Receipts from corn and soybeans accounted for $148.5 billion (53.4 percent) of the total.

Why are crop prices dropping?

CHICAGO, Feb 7 (Reuters) - U.S. farm incomes are forecast to fall sharply for a second consecutive year, as direct government payments shrink, production costs surge and growing supplies of grains and oilseeds send crop prices plunging to multi-year lows, the U.S. Department of Agriculture reported on Wednesday.

Is corn more profitable than soybeans?

Corn is projected to be more profitable than soybeans, as has been the case in our three revisions of 2022 Crop Budgets (see farmdoc daily, April 12, 2022). The switch to soybeans from corn signaled in the Planting Intentions Report released on March 31 caused prices to swing even more in favor of corn.

What is the price of soybeans per bushel?

Interactive chart of historical daily soybean prices back to 1971. The price shown is in U.S. Dollars per bushel. The current price of soybeans as of April 18, 2024 is $11.4000 per bushel.

What crop makes the most money?