My boss, Top Producer editor Greg Vincent, has absconded to Brazil from whence he is blogging his adventures. While we all think $10 beans will spur Brazilian producers to increase acres big-time - there is a good reason why that may not occur.
So, now the strong prices coming from Chicago and the signals being flashed from the rest of the world will just have to wait. Acreages is expected to increase over last year by about 6 % to 7 %, but that will just get acreage back at 2005-06 levels. If the export market remains strong throughout the rest of this year, and expectations hold out that U.S. soybean acreage stays historically low in 2008 (even in light of the projections that acres will rebound next year, acreage will be lower than normal) the Brazilian market will be poised to make a dramatic comeback. It just won’t happen until the 2008-09 growing season. [More]Follow his exploits in the southern hemisphere here.
Am I the only guy who finds $10 beans irresistible for 2008?