Price soars for soy
returns fell 0.7 per cent in September led by wheat and corn, with
soybeans facing increasing price pressure.
A recent round up from Goldman Sachs reveals that agriculture returns fell 0.7 per cent in September led by wheat and corn, and soybeans face price pressure.
Prices in grains, particularly wheat, rose earlier this summer as extreme weather shocks in Canada, Europe, and the United States created 'significant uncertainty about this autumn's harvest,' reports the group.
'As we enter the harvest season and yield uncertainties are beginning to dissipate, wheat and corn prices have come off sharply,' said Goldman Sachs.
Prices for soy ingredients continue to feel the pressure surging to the highest levels since January 1998, ending September at 677 cents/bu (88 cents/bu above end-August prices).
'Driving this price spike has been the increased uncertainty surrounding the US yield, following a drought earlier this year in the US Midwest, which has increased the likelihood that yields in the imminent crop yearwill be exceptionally low, possibly the lowest crop yield since the 1996/1997 crop,' said the report.
The situation is unlikely to balance out - and price volatility is expected to remain - until the full effects of the harvest are known.
The US Department of Agriculture's latest production estimate, as of 1 October conditions, reduced the US soybean crop to 2.47 billion bushels.