Soybean futures settled at their highest levels since January 2014, driven by tightening US inventories and output. The agricultural commodity has benefited from the shrinking harvest in Brazil, and the latest news coming out of Argentina could help soybean prices top $15 by the end of the month.

May soybean futures rallied $0.2275, or 1.61%, to $14.3325 per bushel on Friday on the Chicago Board of Trade (CBoT). Soybeans recorded a weekly gain of 1.81%, adding to their year-to-date rally of 9.4%.

According to industry experts, record soybean crushings and exports are forecast to contract domestic soybean stockpiles ahead of the next US harvest. It has been widely anticipated that soybean inventories would tighten amid strengthening foreign demand, mostly from China.

But importers might not have too many alternatives considering the state of production in Argentina and Brazil.

Buenos Aires Grains Exchange announced that it might ease its harvest forecast for the 2020-2021 soybean marketing season in Argentina. The organization cited insufficient rainfall in key producing areas for the rest of the month. This comes soon after the US Department of Agriculture (USDA) projected that Argentina’s 2020-2021 marketing year output would slide 2.5 million tons to 47.5 million tons due to unusual weather trends and late planting.

The Ukrainian government suggested that it might intensify grain shipments in the next marketing season since harvests are approaching all-time highs. This would ease some of the pressure facing agricultural commodities.

Should China reduce its demand, could the industry eventually face a surplus? S&P Global Platts data found that Beijing’s demand for soybeans has slumped in recent days amid continual negative net crush margins. Market analysts attribute this to typical seasonal demand, with most projections showing that the world’s second-largest economy is expected to import 100 million metric tons and 110 million metric tons in the 2020-2021 and 2021-2022 marketing seasons, which are both record highs.

In other agricultural commodities, April corn futures soared $0.1475, or 2.77%, to $5.4725 per pound. April wheat futures added $0.0375, or 0.58%, to $6.5475 a bushel. April coffee futures slipped $0.0075, or 0.58%, to $1.281 a pound.