Record yields to drive down soya bean prices
Soya bean prices across Europe have held up better than expected but are predicted to fall over the coming weeks as record yields are harvested in the US and throughout South America.
Currency fluctuations could also play into farmers' hands, but farmers are being warned that the price decrease will be temporary.
Forward buying the straight now could be a smart move as record soya bean harvests in Brazil and Argentina make a lot more crop available in Europe.
Meanwhile, savvy South American soya bean farmers are said to be holding on to their crops in the expectation that prices will go up after the outcome of presidential elections in Argentina this October.
On-farm soya bean prices in Britain are fluctuating around €410/t, but American trading forecasters say this could drop to just over €200/t locally.
Transport and transaction charges will be added to this Chicago trading price before it gets to Europe.
Stefan Vogel, global head of Rabobank agriculture commodities markets, is forecasting prices to drop below US$9 per bushel (€203.19/t).