Soybean prices rose to their two-month high as demand for soymeal, a popular choice for livestock feed, increases.
According to Bloomberg, soybeans for January delivery rose 1.4 percent to $10.27 a bushel at 7:45 a.m. in Chicago, after earlier touching $10.41, the highest since Aug. 22. At the same time, soybean meal gained 3.5 percent to $389.80 per 2,000 pounds, after touching $399.80, the highest since June 23.
The news source suggested that shipping bottlenecks for soymeal may be a reason why producers have not been able to exactly meet buyers’ demand, causing prices to rise.
“It’s a logistical issue right now where they can’t get the rail cars to move products on the soybean meal side. We have the soybean supplies, so it’s not a bull-market demand issue. It’s just a short-term logistical mess,” said Matt Ammermann, a commodity risk manager at INTL FCStone in Bloomberg.
Reuters reported that this surge in soybean and soymeal demand may be taking some of the downward pressure off of soybean prices in light of record harvests that have kept prices down for most U.S. crops.
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