Soybean surge ahead, firm says
Goldman Sachs says it's increasingly likely soybean futures will surge during the next year due to the growing risk for a decline in plantings. Soybean prices need to outperform corn prices to convince farmers to plant the oilseed instead of corn in the US and South America, according to the firm.
Otherwise, prices will need to rally next summer to curb demand for limited supplies. Gains in corn are capped near $8 a bushel as ethanol producers reduce demand around that price, the firm notes.
CBOT December corn recently up 1c at $7.35 a bushel, while November soybeans jump 2 3/4c to $14.21. (firstname.lastname@example.org)
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(END) Dow Jones Newswires
September 09, 2011 11:16 ET (15:16 GMT)