Soybean futures have much global inventory to unload, but in Argentina there is a reported 12M ton supply that isn’t exactly flying off the selves because farmers there are holding out. Soybean futures are down .11 cents today currently trading just above $8.75 per bushel at the Chicago Board of Trade.
Argentine farmers are said to be reluctant to sell down their soybean stocks as they were reportedly built up in the first place as a hedge against the possibility of their currency’s peso downfall. Recently the peso crashed by more than a third versus the US Dollar in one day, and has been on a more controlled decline since.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the soybean futures market by stating, “The soybean exports and selling from Argentina has defied expectations because of such a large stockpile there.” Levy added, “The soybean (futures) trade has been looking for direction for some time now and this situation in South America adds more uncertainty to the overall outlook.”
Soybean futures trend – although technically “up” at this time – has actually been sideways in nature since late August. I have to believe at these soybean futures discount prices that nations are seeking out good trade value because we’re coming up on the time of year we should see soybeans rally.
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.