Soybean futures have rallied today when our friends from up north in Canada have reported their planting intentions. With world inventories left at glut levels, soybean futures have found support as late as early April at a price near $9.47 per bushel, and Canada’s news to plant less soybeans is proving to be a resistance finder.
Canadian farmers were polled (11,500 participating) between March 18th through the 25th and the study found less acres intended for soybeans. Last year, Canada dedicated a record amount of acreage for soybeans, but this year it will decrease by 3.4%, and this mainly comes from two provinces – Ontario & Quebec.
Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his fundamental analysis regarding the current soybean futures situation by stating, “Soybean (futures) were oversold and this is the type of news that can spur short-covering.” Evans adds, “Now what will it take for soybeans to sustain its rally?”
The trend for soybean futures remains down despite the .42 cent rally from the lows only two weeks ago. Soybean futures should still have a test of its low forthcoming…
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