The demand for soybeans has been very high this season, with meal needed for livestock and oil for biodiesel. World Outlook Board Chairman Gerry Bange says that has certainly raised prices.
"With all these uses, over a billion bushels of exports, crush at 1.8 billion bushels and a crop that was down to about 3.165 billion bushels has us looking at a very tight ending stocks picture," Bange says. "We are down to 160 million bushels, which would be the lowest we've seen since 2003-04."
According to Bange, because of the shortage the average price of beans is about $4 higher than last year's average of $6.43. With the price ration of new crop soybeans to new crop corn running above the long-term average at 2.46 to 1, the battle for acres this year seems to be favoring soybeans.