Photo: AP Images
The worst Midwest drought in 76 years will leave the country with its lowest soybean inventories in four decades, Bloomberg’s Jeff Wilson and Tony C. Dreibus report. The pair talked to a grain analyst who painted a disturbing portrait of the country’s soybean harvest:
“The U.S. will simply run out of soybeans” for exports on March 1, said Doug Jackson, an FCStone vice president in West Des Moines, Iowa, who has been a grain-industry analyst since 1974. “The supply situation is unprecedented. The theoretical maximum South American shipping capacity may fall short, leaving world buyers wanting.
Reserves will be the lowest since 1973 by March, estimates INTL FCStone Inc., which handled $75 billion of physical commodities in 2011.
In July, Goldman predicted soy futures would reach $20 a bushel by October. Prices currently stand at $17.14.
Business Insider Emails & Alerts
Site highlights each day to your inbox.