Despite the rise in planting acres, the global demand is still strong. Corn and soybean prices surged after the reports were released. New crop soybean prices traded at the $1.17 range on June 30th. With the increased planting, many expected the price will eventually go down amid abundant supply. However, if the price pulls back, farmer selling is going to be minimal. End users might need to actively look for ways to secure inventory.
On top of the market behavior, the weather pattern in the US may also be of concern. For corn and soybean, it is currently too wet in the East and too dry in the West. How would the weather pattern affect the crop harvest this fall would be a major concern for consumers and producers alike. Either way, the crop market is likely to be volatile, with bit price swings likely in both directions.
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