The price of soybeans made a significant shift on Friday. That happened after it was announced that the acreage in the United States and the stock figures are higher than expected.
The CBoT is at its lowest point in 17 months, with a loss of 5 cents. The May 2017 contract closed at 963 cents per bushel. The lowest price was tapped at 944,25 cents per bushel.
Increase in acreage
The reason for the current bear market is the large increase in acreage. It increased by 7 percent. Growers reported seeding 89,5 million acres. That information has exceeded the expectations of many analysts. This amount immediately sets a new record.
Inventory figures above expectations
In addition to the area increase, the stock figures also exceed expectations. The USDA estimates the stock at 1.74 billion bushels. That is 13 percent more than a year ago in the same period.