Even with record soybean crops in the United States and South America soybean prices have stayed strong. John Roach, Senior Market Analyst with Roach Ag Marketing says the reason has been strong underlying demand from processors and the export market.

Traders have been watching La Nina and potential dryness in Argentina and southern Brazil and if that condition persists that could produce another rally in soybeans. However, Roach says weather isn’t the only factor that will push prices higher. He thinks the lack of farmer selling will be supportive.

And as a result, he believes the soybean market will likely retest the contract highs in the next few weeks.

Soybeans have been more profitable than corn and so there’s already talk of more soybean acres in 2018. However, Roach doesn’t see an increase in world acreage so he isn’t getting aggressive on selling new crop beans.

Roach was one of the keynote speakers at last week’s Ag Outlook meeting in Sioux Falls.