Abundant Supply And Low Demand Drive Down Prices

Soybean Prices Hit 4-Year Low

Abundant Supply and Low Demand Drive Down Prices

Soybean prices have plunged to their lowest level in nearly four years, hitting 101 per bushel on Tuesday. This significant drop is driven by abundant supply and relatively low demand, according to industry experts.

Wholesale and Farmgate Prices in the Philippines

In the Philippines, wholesale soybean prices have fallen to an average of 1,000 pesos per 50 kilograms, while farmgate prices have dropped to 800 pesos per 50 kilograms. These prices represent a decline of approximately 15% compared to last year.

Soybean Futures Prices

On the futures market, soybean prices for September delivery are currently trading at 103 per bushel. This is down from a high of 125 per bushel in June.

Market Overview and Analysis

The drop in soybean prices is attributed to a combination of factors, including a record harvest in the United States, reduced demand from China due to the African swine fever outbreak, and the ongoing trade war between the United States and China. Industry analysts expect prices to remain low in the short term as global supply continues to outpace demand.

Impact on Soybean Farmers

The decline in soybean prices is having a significant impact on farmers around the world. In the United States, for example, soybean farmers are facing lower incomes and struggling to cover production costs. Government subsidies and other support measures are being considered to help alleviate the financial strain on soybean producers.