Soybean futures outperformed in 2016, rising for the first time in four years, by 14.4%, compared with a 1.9% decline in Chicago corn futures, and a 13.2% drop in wheat.
While the US harvested a record crop, demand has been strong too – supported by Chinese imports which also set a record high, with demand supported by a recovery in the fortunes of the country’s important hog producers.
Meanwhile, values of soybean oil have been supported by disappointing global output of rival palm oil, with the latest El Niño casting a long shadow over South East Asian production.
But will such factors continue to support soybean futures in 2017? Or will the US produce another record harvest to dampen price prospects?