Soymeal futures reached their highest prices in over a year and a half due to the outlook for Argentina’s supply (the world’s biggest soymeal exporter) and tightening supplies here in the US. Today soymeal futures extended their gains to nearly $420 per ton and are currently up $5 for the day trading at $412.20 at the Chicago Board of Trade.
Aside from Argentina’s soybean disruption, soymeal production here in the US is reportedly being disrupted due to at least two processing plants temporarily closed for seasonal maintenance. Soymeal is a preferred high-protein animal feed used for livestock all over the world.
Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, shared her fundamental view of the soymeal futures market by stating, “There is both a Northern & Southern Hemisphere source for soybean bi-products, but with reported wide-spread flooding damaging the soybean crop in Argentina, the global supplies for soybean usage is threatened.” Bourbeau adds, “A lesser soybean harvest simply threatens meeting global demands for the products it produces.”
Soymeal futures trend is up with no top yet in sight. I am seeing in my studies of soybean and soymeal futures the market is leaving little room for complacency when deciding when to “get in” these futures markets.
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