Soybean Futures Initially Rise With Soy Oil Demand

Soybean futures initially rallied for a third straight trading session with the strength of soybean oil demand, but both markets have since retreated and are just below unchanged as of this writing. Soybeans reached a price of $9.90 per bushel earlier in the trading session when soybean oil futures extended their three-day gain at the Chicago Board of Trade. Soybean futures is considered the “parent” contract of both its by-products – soybean oil, made from pressed soybeans, and soymeal, the left-overs once the oil is removed used for livestock feed. The rally and demand of soybean oil was up as much as 6% twice this week. “Soybean oil (futures) can very well be leading the pack with talk of strong overseas demand,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the fundamental assessment of the soybean futures market. Brady added, “It’s natural for soybean prices itself to rise with the demand of the actual by-product.” Soybean futures have rolled over to a technical uptrend only last week with lack of follow-through. We can expect more range-bound until July Soybean futures can break through resistance at $9.95, or support at $9.60 per bushel. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Demand by World for Palm Oil Can Boost Soybean Oil Futures

Soybean oil futures have plummeted to prices not seen since 2002 and should be near a bottom in part by increasing palm oil demand increasing by importers in Europe, according to Oil World. Soybean oil futures reached new lows even today just below the .32c level. The Hamburg research group claims in the first-half of this year, palm-oil imports from the EU rose to a record of just a little more than 3.33M metric tons – about 3% more than in the first-half of 2013. Oil World’s report delivers a belief in a “near-bottom” for the cooking oil because of low global stockpiles. “Low soybean oil (futures)prices have caused an increase in European demand in the first half of 2014. We believe the low prices for year have either already occurred or will occur very shortly,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, sharing his insight regarding the current soybean oil futures situation. The trend for soybean oil futures is clearly down with no bottom yet in sight. I am compelled to continue taking each short trade until the overall soybean oil futures picture changes. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Forecast of EU Imports to Rise is Bullish for Soybean Futures

A prominent soybean industry researcher predicts European Union imports will climb to levels not seen since the 2008 time frame. Industry group “Oil World” makes this prediction based upon the increased crushing of the oil seed for the soy bi-products.   The EU is on track to import almost 14M metric tons of soybeans through August – a little more than one-half ton imported a year earlier. Oil World sees the crossings rise by a little more than one-quarter ton in this time frame. Oil World went on to say that earlier this year there had been lower than expected soybean meal imports from South America. At the same time, the “reserved selling of rapeseed there in Europe kept prices of the competing oilseed high.” Soybean futures trend is up with no top yet in sight. We were stopped out just yesterday one day after soybean futures made new contract highs late last week. Looking for another opportunity to get long this market. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...

Drought Conditions in Asian Growing Areas Bullish for Soybean Oil

Soybean oil may be in for a boost in price very soon. The world’s top three palm oil producers in SE Asia claim “prices have the potential to rise” because of drought conditions in the growing areas of Thailand, Malaysia, and Indonesia. The Hamburg, Germany research group “Oil World” stated in their report dry weather for the past two months has created moisture shortages for some plantings and water rationing. They also say continue dryness in the next two weeks may prompt “an even more bullish supply scenario” for the forthcoming year. Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current soybean oil futures situation, “Oil share is getting hit again. The tightness in soybeans and soybean meal is leaking into the soybean oil.” Moreno added, “Expect soybean oil to move higher.” Soybean oil’s trend is up despite the pull-back in price since the March 7th high. I am looking for buy signals in soybean oil as of this writing. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...