If present global pricing conditions remain for another six-nine months, financial constraints could force Argentine farmers to pull vast quantities of soybean acreage out of production next year. Impending Price Volatility Today's aggressive selling of CBOT futures contracts will likely send shock waves through global oilseed and grain basis that could take a few weeks before some semblance of equilibrium is re-established between world prices at major exporting ports. After all, the current uncertainty will cause buyers to step back, which in turn could cause basis to weaken further until buyers suddenly return en masse to acquire inventory at what appears to be "fire sale" prices. The exact price level of such composite interest is unk...

TAGS – Feed Grains, Soy & Oilseeds, Asia, North America, South America