Soybeans, once largely unknown in western societies have
become an important food staple around the world over the last twenty
years. But now the world soybean supplies are dwindling as
skyrocketing demand makes it difficult for grower nations to keep pace.
Many market analysts predict an acute soybean shortage in the near
future. Prices for soybeans hit an 8 year high on the commodities
markets last week, almost immediately after a report suggesting an
imminent shortage was published in an influential trade magazine.

          The report, published in the latest issue of AgroEconomics,
suggest the shortage can be attributed to two related factors. First,
Brazil, the second largest producer of soybeans after the United States,
has been srippled by port strikes that have halted all shipments to other
countries. Second, the strike in Brazil has created an increase in foreign
and domestic demand for U.S. soybeans that has depleted U.S.
stockpiles. At last report only 120 million bushels were left in U.S.
reserves, less than a two week supply.

          The shortage has become so acut that some U.S. food
companies have has to reduce their production processes. Some are said
to be considering closing their operations and laying off their employees
until the situation improves.

1. According to the article, what is true of soybeans?