Soybean futures are in the midst of four consecutive down days erasing all gains from its newly established up-trend from the latter-half of February. Soybean futures are down another .07 cents at the Chicago Board of Trade (as of this writing) currently at $9.87 per bushel – from Monday’s high of $10.39.
Soybeans had initially rallied reportedly because a major trucking strike in Brazil – the world’s second-biggest soybean exporter – caused major concern over a possible disruption of exports. Also weighing heavy on soybean futures is the strong US dollar as this diminishes the purchasing power of importers around the world.
“Apparently the strikes in Brazil are said to be diminishing easing concerns about soybean exports,” said Jeff Evans, Vice-President of the Managed Accounts Division for RMB Group in Chicago, sharing his fundamental analysis regarding the current soybean futures situation. Evans added, “Whatever the concerns about the export prospects are in South America, the strength of the US dollar is proving to be the final word in soybean prices.”
Soybean futures trend is technically up at this time, but in the overall picture on the soybean charts illustrates a “sideways” trending market for the past 4.5 months. When soybean futures finally decide which way to trend, the breakout could be substantial because in my experience the longer the sideways action is, the more decisive the breakout is…
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.