Argentine Exports Expected to Rise by Farmer Sales Seen Slowing Soybean Meal Futures

Soybean meal futures may be preparing to decline as news from Argentina suggests processors there are stepping up their exports. Soybean meal futures have experienced a big boost last month, enough to get the attention of grain processors in the world’s biggest exporter of soymeal.

Argentina is expected to ship between 1.2-1.3M metric tons of soymeal during this first-half of November, and total soymeal exports for this month is anticipated to be nearly one-million tons more than this same time last year at this current rate (if it can be kept up). Soybean meal futures blasted-off out of nowhere last month due to delayed domestic shipping, and this delay effectively shifted importers demands to South American suppliers – thus, the decision to “step-up” processing.

Soybean meal futures trend is up, however, I see possible “topping” action in this range between $410 – $370 per ton. This bounce in soybean meal futures today is the reaction to yesterday’s sell-off after the monthly USDA crop production report was released. I am proceeding with caution.

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