Friday, March 26, 2010

Soybeans Plunge on South American Production

Soybean Demand

Soybeans plunged to their lowest levels in two weeks as concerns over strong production in South America will cut back on demand for U.S. soybean exports.

On the Chicago Board of Trade soybean futures dropped 17l5 cents to $9.425 a bushel, the steepest fall in price since March 11.

Soybean exports in the U.S. are expected to drop quickly as the South American harvest is exported around the world.

Brazil and Argentina are the second and third largest soybean exporters, behind the No. 1 exporter - the United States.

The combination of their harvest will increase supply by about 35 percent, while global inventory will rise 44 percent. The USDA said this is the largest increase ever before the soybean harvest in the U.S. starts.

Soybean Demand

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