Soybean farmers are not the only ones with poor margins. Corn, cotton, rice, and other crops are losing money too. Why is it that only soybeans are on President Trump’s “must buy” list given Xi Jinping? If that is all it takes to bring China into our Ag markets other farmers are feeling pretty left out. China reportedly bought US sorghum. How about some corn and some cotton? Why is it mostly only soybeans? The soybean market believes that China will make an effort to comply with President Trump’s ask for them to buy another 8 mmt tranche of US soybeans and is pricing this unexpected demand into the market. The US soybean rally has been supported by both domestic demand for soyoil along with soyoil exports that should be forthcoming in a trade deal with India if completed. Due to timing, crop seasonality, this surge in demand is going to be of more benefit to commercials who now own most US soybeans and who crush soybeans to get the valuable soyoil. Brazilian soybean farmers may not benefit as it is their harvest season. Brazilian soybeans sell for $1.20-1.30 bushel discount and that discount could widen further. How much…
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