Soybean slump?

Soybeans, which had been the star of the region’s major crops, aren’t shining quite as brightly this summer.

But advocates for the crop say that soybeans continue to more than hold their own.

“There are some additional challenges, but farmers are still optimistic” about soybeans, says David Iverson, an Astoria, S.D., soybean farmer.

Lower prices are the biggest challenge, although weather is a concern, too.

Nationally, soybeans fetched an average of $9.28 per bushel in May, down from an average of $10.70 in May 2009, according to the National Agricultural Statistics Service, which is part of the U.S. Department of Agriculture.

Beans — both old and new crop — generally are bringing less than $9 per bushel at area grain elevators, even after a modest price rally in June.

The prices of other ag commodities grown in the region have dropped during the past year, too, but until recently soybeans prices had fared relatively better than prices for corn and wheat, the region’s other crops.

Give the Chinese both credit and blame, says John Sanow, an analyst with Telvent DTN in Omaha, Neb.

Strong Chinese demand for U.S. soybeans had helped to prop up prices. U.S. soybean exports to China have quadrupled in the past decade, and last year China accounted for $9.2 billion of the $21 billion in soybean and products exported by the United States, according to the U.S. Soybean Board.

Recently, though, “There’s been a deep freeze in demand activity from the Chinese,” Sanow says.

Chinese officials, citing overcrowding at some of their ports, have turned away a number of ships filled with soybeans.

Big crops elsewhere

Big soybeans harvests in Brazil and Argentina also are dampening bean prices, Sanow says.

Brazil is the world’s second-biggest soybean exporter behind the United States. Argentina ranks third.

Combined, Brazil and Argentina export more soybeans than the United States.

Also working against bean prices: The record 78.1 million acres of soybeans that USDA expects American farmers to plant this year.

Soybeans have been established crops in Minnesota and South Dakota for many years. Minnesota ranks third in U.S. soybean production, South Dakota eighth.

Soybeans’ popularity has grown sharply in North Dakota over the past decade, with acreage rising from 1.9 million in 2000 to a record 4 million this year, USDA says.

Between the increase in acres and 2009’s good prices, North Dakota farmers received $1.1 billion for their soybeans last year. That was up from $250 million in 2000.

Soybeans, though probably not as profitable as they’ve been, remain an attractive crop in the state, says Monte Peterson, a Valley City, N.D., farmer and president of the state Soybean Growers Association.

Heavy rains this spring and early summer also are concern, he says.

Crop progressing

Many soybean fields in the region aren’t as advanced as farmers would like, but beans generally are doing well, according to the most recent numbers from the National Agricultural Statistics Service, an arm of USDA.

In Minnesota, 89 percent of soybeans are rated good or excellent.

In North Dakota, 86 percent are good or excellent.

South Dakota’s crop isn’t doing as well, with 72 percent rated good or excellent.

That reflects excess moisture in big areas of the state, says Iverson, the Astoria, S.D., soybean grower.

Sixty-nine percent of soybeans in the nation’s top 18 bean-producing states are in good or excellent shape, USDA says

Soybean prices often rally during the summer on reports of weather problems across the country, and that could happen again this year, Sanow says.

Farmers should keep a close eye on prices and take advantage on any rallies that develop, he says.

Tags: crops, farm, soybeans