Soybean prices may rise this year because U.S. farmers plant less and demand for animal feed and cooking oils made from the oilseed will increase, said Richard Feltes, vice president of research for R.J. O’Brien & Associates LLC.
Farmers can make more money growing corn and cotton than soybeans, Feltes said at a client conference in Chicago. Soybean consumption will continue to expand from record levels in China, the biggest global importer of the oilseed, because of increased demand for animal feed, he said. The U.S. Department of Agriculture is scheduled to report on farmers’ planting intentions in a report on March 31.
“You want to be long soybeans before the USDA report,” Feltes told brokers today. Speculative long positions are bets prices will rise.
Soybean futures for November delivery, after the harvest, fell 4.5 percent last week on the Chicago Board of Trade. The contract has risen 39 percent in the past year.
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