Soybean futures continue their free fall from $15.20 highs (only last week) on the outlook the USDA will report favorable production and inventory later this week. Soybean futures are currently trading at $14.48 per bushel at the Chicago Board of Trade – this .70 cent drop the most in over a month.
On Friday, the USDA will release its forecasts for world grain supply and demand, but in the meantime, here is what a survey of industry analysts are predicting: for world soybean stockpiles to rise to a record 79.68M metric tons before the start of the Northern Hemisphere’s growing 2015 season. Another report reveals US soybean output projected at all-time highs this year.
Matt Zeman, a senior commodity broker at Kingsview in Chicago, had this to say regarding the current soybean futures situation,“Speculators appear to be selling beans and/or taking profits as the upcoming USDA report may indicate a more favorable supply scenario for next year.”
Soybean futures trend remains up, however, may be at a crossroads. I am still looking for buying opportunities in soybean futures, but any much more trading at these levels, and lower could change my mind about the long side of this market.
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.