Soybean futures worked its way to higher prices not seen in over two weeks on signs of increasing demand for US soybeans. Late in the trading session, however, soybean futures couldn’t hold its gains and appears as if it will close “down” for the day.
Today the USDA stated soybeans inspected for export rose 64% in the week ended last Thursday compared with a year earlier. Shipments of soybeans since last September have also climbed 22%, but soybean meal since last October has only risen almost 5% above last year’s pace.
“This morning’s rally in soybean (futures) gained support from the larger than expected soybean inspections. Supplies should remain tight a for some time since the expected 90 million bushels of U.S. soybean imports has yet to materialize,” said Kevin Riordan, director of research at Capital Trading Group in Chicago, regarding the current soybean futures situation.
The trend for soybean futures is technically “up,” however appears to be at some sort of crossroad. I will proceed with trades to the long side of soybean futures as long as the bullish scenario remains intact.
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.