Soybean futures appear to be selling-off today despite crop shortfalls in the Southern Hemisphere where crushing plants in Brazil are reportedly cutting back and exports said to be high. Soybean futures are down .16 cents today currently trading at $10.00 even per bushel for November delivery at the Chicago Board of Trade.
According to a University of Sao Paulo economic think-tank, despite soybean crop shortfalls Brazil’s soybean exports this year have surpassed those from last year at this time to a record 44.35M metric tons. Soybean meal compared to this same time last year have reportedly risen 8.7%, they also claim.
“Part of the reason for reduced crush demand in Brazil is is said to be due to eroding demand from their poultry industry,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his fundamental assessment of the soybean futures market. Craney added, “Reports of Cargill and another prominent soybean crusher stopped the processing of soybeans reportedly due to lack of demand.”
Soybean futures trend had been technically “down” until today’s trading session. When and if soybean futures take out today’s high before any sustained trading below $9.84 over the next week occur, this may change the course of the trend to up.
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