Soybean Prices Continue to Plunge

By Ellis Codjoe, May 13, 2019

The price of soybeans have hit an 11 year low, according to the Iowa Soybean Association.

The U.S. Department of Agriculture (USDA) released its World Agricultural Supply and Demand Estimates (WASDE) report last week. The report foretast 2018-19 U.S. ending soybean stocks at 995 million bushels, up 100 million bushels from the April forecast. July 2019 soybean prices dropped 14 cents to $7.97 immediately following the release of the WASDE report.

Grant Kimberly, director of market development with the Iowa Soybean Association attributes the low prices to a high world supply and the U.S. being cut off from most of the international market.

“This is one of the most challenging periods of time we’ve faced in agriculture since the ‘80s. Stocks are so large, competition is so strong from other parts of the world, and we don’t have access to the largest market in the world which accounts for 60 percent of global soybean sales.”

U.S. Secretary of Agriculture Sonny Purdue announced via Twitter that the White House has requested the USDA to look into providing a second federal aid package for farmers, though no details were disclosed.

However, Kimberly said that farmers would prefer trade deals over federal aid.

Last week, the United States imposed new tariffs on China. It was announced Monday that the Chinese plan to retaliate with new tariffs of their own that will take effect on June 1.

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