Soybean futures are finding support today after Brazil’s soy crop received a further downgrade due to much needed rain evading key growing areas. Soybean futures ended the day down more than .05 cents per bushel, settling near $8.86 per bushel at the Chicago Board of Trade.
An expert analyst dampened the hopes for the Brazilian soybean harvest after reportedly stated “poor germination and low plant populations” in the key soy-producing region of Mato Grosso. As it is summer in the southern hemisphere, there is said to be no sign of immediate rain set for one of Brazil’s key producing regions.
Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, shared his fundamental view of the soybean futures market by stating, “If the hot and dry weather is causing poor germination and few soybean plant populations, then reseeding may need to happen.” Evans adds, “This has the potential to turn the whole soybean (futures) market around…an event to keep a close eye on.”
Soybean futures trend has only recently turned up with very little follow-through. Soybean futures are trading in exactly the middle of the range created just this month – $9.10 resistance, and $8.55 support – so these are price points to keep a close eye on.
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