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Hogs Love Soybeans, You Should Too: Analysts
CNBC.com | April 02, 2012 | 01:06 AM EDT

Soft commodities have been on something of a rollercoaster over the past 6 months, with wheat and - to a lesser extent - corn bearing the brunt. The market expects strong forecasts this year with corn plantings predicted to reach their highest level since 1944.

But as we wave goodbye to a volatile first quarter, analysts believe soybeans are now a good bet thanks to strong demand in Asia.

“China is one of the biggest players. They have approximately 400 million hogs compared to the USA which has 64 million. These need to be fed and they feed them with soybeans. So the soybean market is going to be a big driver in the medium to long term," Erkut Ozer, CEO of Global Trading Enterprises told CNBC.

Luke Chandler, Global Head, Agri Commodity Markets Research at Rabobank, also sees strong potential in soybeans.

In first quarter of 2012 soybeans rose more than 13 percent on a continuation chart, marking the biggest quarterly gain in a year.

"In our 2012 outlook that we released in December, soybean meal and soybeans was our top pick and that’s really played out in this first quarter," Chandler said. "We were really factoring in the linear weather conditions and the downward productions for South American production and that’s certainly come to fruition."

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