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| There is negative pressure on beans at this time according to the local processor.
First problem is that soy oil is not in demand. The move away from trans fat oils has hurt and bio fuels have not increased enough here to offset the falling demand. They are going to open their own bio diesel plant next month, maybe this month as I think I was talking to them the last week of Aug., and after tax credits they will we losing 10 cents a gal on the oil.
Second is meal prices. Just not keeping up with the increase in bean prices.
Upside is that the waste product (soybean hulls) will be in heavy demand to replace hay.
I have never seen them (employees at processor) so down in the mouth.......
I expect basis to be high as they try to keep the bleeding slowed down. Their words "Crush spread is awful"
Tim | |
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Soybean market problems.
