Soybean futures are higher today amid news the Brazilian soybean crush being headed to an all-time high due to soymeal and biodiesel demand, plus firm soymeal exports. Soybean futures are up .0225 cents today currently trading at $8.88 per bushel at the Chicago Board of Trade.
The USDA’s Brasilia-bureau raised its soybean crush 25% in the fiscal year to February 2017 to 4.5M tons reportedly due to higher domestic & export demand for both soybean and soybean oil products. The domestic side of demand is partially due to higher demand in both the pork & poultry industries, and a weaker currency opening doors for new markets.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shared his fundamental view of the soybean futures market by stating, “The benefits of a weaker currency cannot be overlooked as in this case the boost to the agriculture and livestock industry.” Plotkin adds, “Even the demand of biodiesel fuel is helping the soybean industry there in Brazil.”
The trend for soybean futures has turned back “up” only yesterday. Soybean futures has been a see-saw market since last summer and I have a feeling when it takes off in one direction or the other, it may be significant.
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