Soybean futures initially fell following today’s USDA Crop Production report, to the lowest soybean prices since 2010 once the report indicated supplies will be bigger than forecast here domestically. Soybean futures are mid-range (down .14c) as of this writing.
It is now estimated US farmers will harvest a record breaking 3.816B bushels of soybeans this year – 160,000 thousand more than estimated just last month, according to the USDA just this morning. This estimation was after completing the very first surveys of fields and farmers and very close to what other expert analyst’s were expecting.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his insight regarding the current soybean futures situation by stating, “With ideal crop production weather across the country this season it comes as no surprise that this morning’s report was bearish on the market. The market will continue to watch how weather shapes up at the end of the season along with actual yield results.” Craney added, “For the time being look for the market to trade sideways into harvest.”
Soybean futures trend is still down with no bottom yet in sight. I do expect soybean futures to eventually rally soon, but seasonally speaking this market traditionally doesn’t put in a bottom until the end of the year.
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