News & Publications
October 20, 2023 |
Corn, soybean pricing strategies in a volatile market
November 2023 and 2024 soybean futures remain well above the five-year average for November futures for this time of year.
November 2023 soybean futures this week rebounded to trade just shy of $13.00 while November 2024 futures climbed back above $12.50. Since rallying to a high of $14.09 ½ on Aug. 28, November 2023 futures had plummeted $1.59 (11%). November 2024 soybean futures, meanwhile, fell $0.85 over the same time period (6%).
Stronger-than expected export competition from Brazil and larger-than-expected ending stocks from the 2022/23 crop year have pressured nearby prices. At the same time, weakness in the November 2024 soybean contract has been fueled in part by ideas of a potential increase in U.S. planted soybean acreage next spring, as producers move away from corn due to declining profitability relative to beans. Despite these bearish headwinds, November 2023 and 2024 futures remain $1.88 and $1.60 above the five-year average for November futures for this time of year.
