Soybean Fundamentals Look Challenging

Soybean Markets
Soybeans in hand ( MGN Image )

While corn markets continue to hold strength amid slow planting and wet weather, soybean dynamics are in a different place. 

Mark Feight with International Agribusiness Group spoke to AgDay's Clinton Griffiths about the outlook for soybean fundamentals.

"Soybeans tend to be the anchor right now keeping corn from getting higher," says Feight. "We believe, from a planting perspective, if we don't plant corn, we're going to have to plant a lot of beans in the market."

The potential of switching acres to soybeans and the ongoing threat of African Swine Fever reducing overall demand, is keeping prices in a limited range. 

"We believe the problem is probably bigger than what we know right now," says Feight. "We're talking about probably a 20% reduction in the hog herd and I think that's minimum."

He says falling hog numbers in Asia is only going to limit future bean demand.

"That's had a bigger impact on demand for soybeans and I don't think we've seen the full impact yet," says Feight. "We've just got too many beans in the world."