How Are Soybean Prices Trading in July 2016?



Soybean prices

In this part, we’ll delve into recent soybean prices and how they have trended over the years. By looking at these trends, we might get insight into the fundamentals of seed companies such as Monsanto (MON) and Syngenta (SYT).

We can also look at the fundamentals of fertilizer companies such as PotashCorp (POT) and CF Industries (CF) as well as a broader portfolio of ETFs such as the VanEck Vectors Agribusiness ETF (MOO).

Article continues below advertisement

Prices are moving higher

On July 13, 2016, soybean prices stood at $11.2 per bushel—compared to the low of ~$11.03 per bushel in June. Despite the global stock-to-use ratio for soybeans being lower than all of the other years, its prices are sitting on the lower end of the price band—as you can see in the above chart. Soybean prices are 8% higher year-over-year.

Soybean prices are stagnant along with the prices for corn and wheat. This is also why the farm income has been declining over the years. In the near term, this stagnation failed to generate excitement in the seeds sector and the fertilizer sector.

Crop prices also have an impact on fertilizer prices. Read Fertilizer Prices for the Week Ended July 8: More Bad News? to learn more.

Also, stock-to-use ratio figures are published monthly by the U.S. Department of Agriculture. We’ll update these figures as they’re released.


More From Market Realist