Soy-Crop Bust Spurs China to Drain U.S. Bins: Commodities

[phantom power]

U.S. soybean stockpiles are poised to drop to the lowest relative to consumption since at least 1965 after the worst drought in five decades decimated crops across South America, driving China to buy more from Midwest farmers.

Inventories will decline 20 percent to 172 million bushels (4.68 million metric tons) before next year’s harvest in the U.S., the largest grower, according to the average of 31 analyst estimates compiled by Bloomberg. This year’s 19 percent rally may extend another 11 percent by the end of June to $16 a bushel, according to Linn Group, a brokerage and researcher based in Chicago. Prices reached a record $16.3675 in 2008.

The U.S. Department of Agriculture cut its forecasts for the South American crop four times in as many months after predicting record supplies as recently as December. The estimates are scheduled to be updated May 10. Imports by China, where demand doubled since 2004, will advance to a record 55 million tons this year as farmers feed a hog herd expanding 4.4 percent to a record 690 million animals, USDA data show.

http://www.bloomberg.com/news/2012-05-07/soy-crop-bust-spurs-china-to-drain-u-s-bins-commodities.html

[madrchsod]

1. good luck with that...

we have`t started to plant beans in the midwest and no one knows what the weather will be.

[LiberalEsto]

2. Does this mean the price of tofu will go up?

or as my kids used to call it, "toadfood"