U.S. soybean prices have rebounded, increasing 10 cents to $13.55 per bushel on March 21 on increased demand from China coupled with worries that U.S. farmers might not plant enough to meet global needs, according to reports.
China may import 25 percent more soybeans in the first half of 2012 than in the first six months of 2010, said an official think tank. "In a normal year, South American beans would outprice U.S. beans during this time frame by $30 a [metric ton], but those types of discounts are not here," said Roy Huckabay with the Linn Group. "U.S. beans are really rather competitive."
A strike by truckers in Argentina has added to worries about the availability of South American soy supplies. "I think the Argentine truck strike is getting some publicity," said Mike Zuzolo with Global Commodity Analytics. "If the South American supplies are not available for increased purchases by China, that suggests you want to keep some premium for beans."