August was a very dry month, which hurt soybean production potential. John Baize, chief executive of John C. Baize and Associates, an international agricultural trading firm, says USDA's Aug. 10 crop estimate of 71.4 million metric tons may be too high and actual soybean production might be around 67 million tons.
Baize told the attendees at the Southeast Asia-U.S. Agricultural Cooperators Conference that many producers he has talked to are seeing significantly lower yields than last year.
According to John Hoffman, president of the American Soybean Association, 13% fewer acres were planted to soybeans this year in the U.S. Putting those factors together, Baize says it's likely soybean prices may top $10 a bushel by November or December.