Soybean futures are finding higher support levels as the month progresses, this week soybeans are climbing on a couple of factors: signs of increased export sales, and a slower than anticipated harvest progress due to weather. Soybean futures are up .20 cents per bushel in Chicago as of this writing.
As of last week, USDA data reveals inspections for soybean exports have risen almost 25% since last month (compared to this same time last year). The USDA has also recently stated soybean farmers have only harvested 53% of their crops – as of this past Sunday – when compared to the five-year average for this time of year of “66%” that “should” be harvested.
“Soybean-meal demand is leading beans higher. Harvest delays are preventing end users from obtaining much needed soybeans for crush,” said Craig Turner, a senior broker for Daniels Trading in Chicago, sharing his insight regarding the current soybean futures situation. Turner added, “While the (soybean futures) market is now trying to flush out as many beans from storage as possible with higher prices, keep in mind that eventually harvest will be back on track, the bean pipeline will be restocked, and never underestimate the ability of the American Farmer to harvest a massive amount of acres in a relatively short time.”
The trend for soybean futures is technically “down,” however soymeal futures are leading the soy-complex with a strong recently emerged up-trend. I need more price structure to trade out before a clearer picture can be determined, but I am happy to participate in soymeal futures while on the sidelines of the parent contract.
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