Sept. 28 (Bloomberg) -- U.S. soybean futures are trading at a “fair” price based on production and consumption data, according to Faik Genc, the managing director of Istanbul-based oilseed broker AgriPro Ltd.
“The current Chicago levels are fair to me, based on the supply and demand situation,” Genc said at the MENA Grains Summit in Istanbul yesterday.
Soybean futures dropped 10 percent this year on the Chicago Board of Trade to $12.5875 a bushel as commodities slumped on concern slower growth will curb demand for commodities. The oilseed is still 13 percent higher than a year ago.
Demand for soybeans, which are crushed to make cooking oil and meal for animal feed, will outpace production in 2011-12, cutting global stocks to 62.5 million metric tons from 68.8 million tons, the U.S. Department of Agriculture forecasts.
“U.S. soybeans, after the harvest, they should go up slightly,” Genc said. “Once the funds are back, once the speculation starts, it will go up again.”
Soybean consumption in Turkey and the Middle East is expected to strengthen in the next several years, Genc said.
“Soybean crushing will become bigger and bigger in the Middle East and North Africa,” Genc said. “Production is very low in these countries because of climate, desert land.”
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