Soybean futures have traded lower for a week and a half now – just before late last month’s USDA crop progress report. The prevailing outlook is our domestic crops remain in good condition which is boosting the sentiments of a record harvest.
USDA data shows the US soybean crop in the best shape for this time of the year in the past 20 years, with 72% of soybeans in good to excellent condition as of Sunday. The USDA is scheduled to officially update their supply versus demand forecasts on Friday, July 11th.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say regarding the current soybean futures situation, “Weather remains the key factor for grain prices in the short-term. Conditions have been quite favorable across much of the Midwest this growing season, and that is currently being reflected in the soybean (futures) market.” Craney added, “As long as weather remains favorable the downward trend in (soybean futures) should continue in the short-term.”
The trend for soybean futures is down with no bottom yet in sight. I will need a significant bounce in soybean futures prices before considering a short position, especially with this next report coming out Friday.
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 CONDITION.