Soybean futures have had a two-day breakout to the upside to prices not seen since early last month on the outlook of current crop conditions. Soybean futures are up an additional .10 cents today currently trading at $9.375 per bushel (as of this writing) at the Chicago Board of Trade.
There are weather concerns going on in the US’s soybean growing region and as of June 14th, the USDA rated the domestic soybean crop 67% good to excellent condition – down from 69% the week prior and down from 73% the preceding week before that. To make matters just a little bit more interesting, the USDA also reports only 87% of the soybean crop planted which is just shy of the 90% five year average.
“The soybean trade understands the concerns here,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his view regarding the fundamental assessment of the soybean futures market. Brady added, “Instead of the soybean (futures) market trading based off of supply-and-demand, a weather crop seems to be emerging here.”
Soybean futures technical trend remains down, but is at a crossroad in my work. Should soybean futures trade above today’s high in the next few sessions (without trading back down to the $9.10 area first), then the trend dynamics would change to up (again, in my study).
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