Soybean futures have rallied above prices from before Friday’s USDA Crop Production report on signs of demand after grain and oilseed prices fell to their lowest levels since 2010 recently. Soybean futures have rallied as much as .21c per bushel today, well above Friday’s highs.
Just today, the USDA reported soybean sales of 120,000 metric tons to China alone, and twice that amount to destinations not yet determined. The expectation of a bumper soybean crop this year has contributed to soybean futures losing 15% in this past year.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, had this to say regarding the current soybean futures situation, “With grain prices falling to 2010 levels the commercial buyers have stepped in which should give a level of support to the market.”
The trend for soybean futures is down with no bottom yet in sight. I have been patient (maybe “too patient”) for a bounce in soybean futures to get onboard the short side and today’s action appears the market is setting-up for just that.
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.