Until there are signs that consumption is slowing, the trend for higher corn prices will be the norm. That’s the word from Darrel Good,
"Soybean prices will likely continue to follow corn prices," he adds.
USDA's November forecasts for the size of the 2006 corn and soybeans crops were smaller than expected. The 2006
In addition the smaller corn crop and high prices are expected to reduce feed and residual use to a three-year low and to limit the year-over-year increase in exports.
"The relatively high price of soybeans is most likely explained by the need for the soybean market to protect its 2007 acreage turf as corn prices move higher. In addition, soybean meal prices are supported by higher corn prices and soybean oil prices are being supported by expectations of rapidly expanding biodiesel production."
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