Soybean futures have sold-off everyday since the June 30th spike in price reportedly due to an upbeat crop outlook in the Midwest. Soybean futures extended their lows today to just under $9.79 per bushel at the Chicago Board of Trade – soybean prices not seen since late June.
The USDA surprised analysts by reportedly stating almost 63% of the domestic soybean crop was rated in good to excellent condition as of last Sunday. Compare this to soybean emergence reported at 93% complete which is an improvement from 89% the week earlier, and 21% of the soybean crop blooming which is up from 13% in the prior week.
Gerry Plotkin, a Senior Market Strategist for R.J. O’Brien in Chicago, shares his view regarding the fundamental assessment of the soybean futures markets by stating, “The entire gain from the June 30th USDA crop planting and acreage report has been erased as of today.” Plotkin added, “This may mean the concern soybean traders had at that particular time may not be a concern today – weather markets are constantly evolving.”
The trend for soybean futures is up with no top yet in sight. Despite the sell-off from the late June high, this appears to be an opportunity for those bullish this market to find a position soon.
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.