January 29, 2008

US braces for low soy seed supply in 2008

US farmers and agribusiness players expect a shortage of soy seed for the 2008 growing season due to commodity price spikes and poor seed-growing conditions.

At recent meetings in central Louisiana, David Lanclos, LSU AgCenter soy specialist, said that with high prices and the seed shortage of proven soy varieties, farmers will need to adjust their farm plans until planting time.

Experts pointed that increases in the soy prices and other feed grains are caused by a worldwide shortage of commodities remaining in storage, the increasing use of the commodities to make biofuels such as ethanol and biodiesel, increased exports and crop shortages in other countries.

US soy and wheat prices on the commodity market are currently twice what they were last year. Soy is selling near US$12.50, wheat at US$8.50 per bushel, while corn remains strong at US$5 per bushel.

Lanclos further cautioned growers to seek advice from LSU AgCenter county agents and other consultants when selecting varieties to plant. Farmers should monitor the germination percentage on the label when purchasing seed.

Industry observers also said that with good management and the ability to procure seed and supplies, farmers will be able to profit by growing soy and feed grains this year.