In a virtual event hosted by the U.S. Soybean Export Council (USSEC), Cargill’s head of Corporate Trading and executive vice president for the Agricultural Supply Chain, Joe Stone, said that soybean prices could go higher as markets continue in ”rationing” mode.

“If the function of the market today is to continue to ration, then we probably have to go a little bit higher than where we are today,” Stone said. “But that could be a very, very choppy ride depending on the weather we have in Argentina.” If Argentina starts getting precipitation, the soybean market could be nearing the highs. If dry conditions persist, markets could go higher still, Stone said.

Soybean prices closed at $13.65 per bushel on January 6, a level not seen since June 2014. Global soybean demand has grown 250% since 1990, noted Jim Sutter, CEO of USSEC. China’s rebuilding of its hog inventory after African swine fever decimated herds is helping boost soybean prices. Both Sutter and Stone expect demand to also strengthen as customers resume normal dining habits put on hold during COVID-19.