April 21, 2015

Soybean Commentary

04/21/2015

The bean market came under pressure today as the bird flu story that has been around for a while now exploded onto the national media today. The flu had been previously reported in Arkansas, Idaho, Kansas, Minnesota, Missouri, Montana, North Dakota, Oregon, South Dakota, Washington and Wisconsin.

On Monday it was announced that the lethal strand of bird flu had been discovered at an egg-laying facility in IA on Monday. What made this outbreak so much more news worthy was that it was in a contained facility verses outdoor turkey farms where the earlier cases were detected. Also the sheer size of the infection is by far the largest flock to be infected to date. According to the company the facility houses, 3.8 million hens. The flock has been quarantined and the birds will be culled to try and prevent the spread of the diseases. This flock was about 6 percent of the egg-laying hens in IA and more than 1% of the US flock. With the loss of all these birds and the fear of losing more due to the continued spread of the disease both the bean and meal markets were weaker on demand fears.

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    Allendale Advisory Contributor:

    Jim McCormick

    Jim McCormick

    Jim started with Allendale in 1997 after earning an Agricultural Economics degree from Purdue University. He has been a featured speaker at several of Allendale’s Outlook Conferences.
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