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cropsey, il 61731 | However, with decent to good bean yields being reported and appears to be more than adequate supplies, do you really think soybeans have lots of upward potential? Keep in mind lots of soymeal has been replaced by DDGs. A weak dollar will be supportive, but $18 is firmly in the category of almost no demand. I'm not sure DDGs are really accounted very well anyway - the last report showed less corn used, but the same or more critters on feed - probably alternatives taking up the slack.
I'm hearing more talk of adequate feed grains in the US and generally worldwide. It would be mistake to think demand would grow as price shoots upward. No user is expanding anything significantly right now and probably won't for a while. Volatility doesn't make anyone feel like jumping into expansion with both feet.
Reality is that speculation has been driving our market. Lots of these guys have backed off and I think the only reason the market is hanging around is that there is an expectation that they'll be back.
thanks,
Pat
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What's everybodys feeling on the bean market?
