Soybean prices may rise this year because U.S. farmers plant less and demand for animal feed and cooking oils made from the oilseed will increase, said Richard Feltes , vice president of research for R.J. O’Brien & Associates LLC.
Prices for the two biggest U.S. crops will fall this year on record corn and soybean production, easing food inflation while providing less cash for growers recovering from drought, the government said.
U.S. corn acreage this year will be the largest since 1937, and more than expected, as profit prospects improve and warm, dry weather encourages farmers to boost plantings, the government said. Soybean acres are forecast to fall while wheat seeding may climb.
A logjam of grain barges is worsening on the Mississippi River after New Orleans terminal closures during Hurricane Issac compounded a slowdown in U.S. exports already delayed by low water levels during a drought.