The prospect of strong U.S. supplies from increased planting by farmers pulled down soybean futures on Tuesday, prolonging what is believed to be a bear market for the agricultural commodity, according to Bloomberg.
So too is the world's supply of the legume forecast to be in surplus as a consequence of drought situations that plagued the Midwest of the U.S. last year. The record price for soybean futures is $17.89 per bushel as established last year.
"We are going from a barren cupboard to abundant supplies in a very short time," president Dan Basse with AgResource Co. of Chicago told the news source on Tuesday. "Seven years of extremely high prices has spurred global production that will lead to several years of rising supplies and lower prices."
At 9:54 a.m. on Tuesday, soybean futures edged down 0.08 percent, a 0.01-cent loss to $13.18 per bushel.
But growers of the legume in Brazil and Argentina generated the strongest supplies ever earlier this year, which amounted to a joint expansion of 54 percent.
The Washington Post reports China is pondering the possibility of allowing the import of soybeans that have been genetically modified.
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