On Friday, soybean futures closed above $12 per bushel for the first time in six years. “We are sitting on a carryout that is extremely tight domestically,” said Kristi Van Ahn, market analyst, Van Ahn and Company. “Not only are we that tight, we haven’t seen any production updates in a little bit and we haven’t seen a change in the demand structure.” U.S. soybean export sales are at 88 percent of USDA’s forecast for the marketing year that ends August 31. Despite that pace, the Agriculture Department has been slow to increase the export estimate. “I don’t know if they are waiting to see if South America gets a crop or if China is going to make any cancelations, but, soybeans have the story.”
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