• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

the high price of soybeans because...

F

Faster horses

Well-known member
Joined
Feb 11, 2005
Messages
30,475
Location
NE WY at the foot of the Big Horn mountains
We all know what
has happened to the crude oil market. Over the last 2 months we have
observed a 40% increase in the cost of soybean oil. Why you ask? Demand
for soybean oil for "biodeisel" is the reason we have $12 per bushel
soybeans. There is speculation floating around now that soybean oil and
other vegetable oils will continue to rise to a point that they will no
longer be affordable by the feed industry. Demand for Veg oil is soaring.
 
When the dollar falls as it is, it makes U.S. grains cheaper for foreigners. We have had a perfect storm of a lower dollar, more plantings of corn for the ethanol market, and always small increasing demand because the world is more populated with more people with more money along with higher input costs.

I don't know that it is direct biodiesel but indirect as growing soybeans has its own market as a protein source. You don't get enough for soy oil to use it for biodiesel solely yet.
 
It is interesting that biodiesel and ethanol are getting all the blame for the higher grain prices at the moment are being influenced more by the value of the dollar. Current prices are still cheap to foreign countries.
 
Well you can't have $2 corn and $5 bean's forever.Very high input cost in raiseing crops.The world is hungry for food and fuel.
 
Don't forget on the stock market high prices can be fuel for higher prices as speculators chase markets. Remember Tec stocks. Wall street is looking for a new way to make a buck. With the housing market in the tank and the jump on the gold market train too late buyers still see room for profit in the grain market. What would happen if U.S.A. falls into full blown recesion. Oil demand stops,demand for certian houshold goods stop(from China) will Oil be at $100 ? Will feed demand drop when hog barns and feedlots scale back 20% because of price drops. Grain guys should enjoy market now because we all know good times don't last forever.
 
cowzilla said:
Don't forget on the stock market high prices can be fuel for higher prices as speculators chase markets. Remember Tec stocks. Wall street is looking for a new way to make a buck. With the housing market in the tank and the jump on the gold market train too late buyers still see room for profit in the grain market. What would happen if U.S.A. falls into full blown recesion. Oil demand stops,demand for certian houshold goods stop(from China) will Oil be at $100 ? Will feed demand drop when hog barns and feedlots scale back 20% because of price drops. Grain guys should enjoy market now because we all know good times don't last forever.
Click to expand...

Heard on the radio, WNAX that with some of the world in drought, that the commodity prices are a fluke, that they will correct themselves.... We must also remember that there is less cattle on feed and numbers are down as of to date.
 
I dont know... I think the cattle industry has started into the perfect storm. Prices are low for cattle and very high for feed grains. Its scary to even think about it.
 

Latest posts

Back
Top