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Soybean Recovers from Mid-July Low on USDA Report

September 28, 2012 at 18:38 by Andriy Moraru

Soybean prices soared today following the release of a report prepared by National Agricultural Statistics Service. The commodity fell to the lowest level since July 11 yesterday.

United States Department of Agriculture (USDA) reported a major year-over-year drop in grain stockpiles for September. Soybean stocks fell 21 percent both on farms and off farms. Corn stocks fell 12 percent and all wheat stocks decreased 2 percent compared to September 2011. Additionally, the report mentions a positive revision of the grains’ yield figures for 2011.

Analysts expect a shift in the supply and demand equilibrium in favor of shortage. The consumption for the period of January-August 2012 rose 23 percent to 498 bushels compared to the same period of 2011. Global exporters may fail to meet the rising demand, pushing the price up.

Soybean November futures rose from $15.7350 to $16.0816 per bushel as of 18:34 on CBoT today. An intraday low was set at $15.7038 per bushel..

If you have any questions and comments on the commodities today, use the form below to reply.

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