Supplies of soybeans are at their tightest levels in nearly 50 years as a result of inclement weather and growing demand, according to Bloomberg.
Parched weather and delays for exports from South American growing nations is enhancing demand for the legume from the U.S., which is the globe’s biggest grower and exporter. Reserves of the legume will amount to 4.2 percent of the amount demanded, which is the lowest since the mid 1960s, according to the U.S. Department of Agriculture.
“The U.S. does not have the supply to sell more soybeans overseas,” grain-market analysis director Dan Cekander with Newedge in Chicago told the news source on Thursday. “Price rationing will have to occur. It may take six months before world supplies are more balanced with demand.”
At 9:37 a.m. on Thursday, soybean futures climbed 0.37 percent, a 0.055 cent rise to $14.935 per bushel.
Agriculture.com reports sales of the legume are still strong at 1.66 million metric tons against the anticipation of as many a 1.3 million metric tons. The Agriculture Department said soybean meal product export checked in at 196,300 metric tons.
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