Soybean futures tumbled to new lows after the long awaited USDA prospective plantings report was released. Soybean futures have since rebounded off of the lows and are currently “unchanged” for the day (as of this writing) at the Chicago Board of Trade.
Here’s a brief summary of the prospective plantings report from 2014: Corn planted acreage DOWN 2%, along with all wheat acreage also DOWN 3%, and cotton acreage DOWN 13%. Soybean acreage, however, continues to climb…albeit only estimated UP 1% from last year, is a record high.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his fundamental analysis regarding the current soybean futures situation saying, “With record soybean inventories fresh on everybody’s mind, the record plantings can only speak of one thing, and that is demand.” Craney adds, “We’ll see how soybean futures unfolds from here…”
Soybean futures trend is down with no bottom yet in sight – especially after making new lows after the report. Looking for a short soybean futures position when the dust settles in this market.
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