Soybean futures have abruptly retreated from a three-month high made only last week as farmers race to increase sales from this harvest’s bumper crop. The US is the world’s biggest producer of soybeans and soybean futures is one of the featured markets hosted at the Chicago Board of Trade.
With the USDA reporting 94% of the soybean harvested earlier this week, they also mentioned output unceasing 18% to a nearly 4B bushel record. Also, it is reported that as of yesterday, premiums on soybean supplies for export from New Orleans have fell to the lowest since early summer.
“The race to sell this year’s soybeans at a premium has begun from this recent .60c sell-off,” stated Jeff Evans, a Senior Broker and Vice-President of the Managed Accounts Division for RMB Group in Chicago, sharing his technical analysis insight regarding the current soybean futures situation. Evans added, “Eventually we should find soybean futures support when the farmers hold out for higher prices.”
Soybean futures trend remains up, albeit with a possible top in sight. I am still looking for buy signals with soybean futures until a clearer picture proves to me otherwise.
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.