Soybean futures have back-tracked just as much as they shot-up in price yesterday based on what is transpiring a continent away. Soybean futures traded at the Chicago Board of Trade is currently down .115 cents at $10.0725 per bushel (as of this writing) after closing up above $10.18 only yesterday.
Apparently concerns regarding disruptions to supplies from Brazil had reportedly boosted prices as a strike from truckers there protesting high fuel prices has continued for a week. More recently the Brazilian government has imposed a fine on these truckers for blocking the road and holding-up grain exports at their nation’s second-largest exporting city.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental analysis insight regarding the current soybean futures situation by stating, “If Brazil wasn’t a major soybean exporter that competes with US supplies it wouldn’t be much of a story.” Craney added, “The demand for soybeans still exists so even when supplies ‘anywhere’ are threatened just goes to show how (grain) prices may spike.”
Soybean futures trend had turned up just last week, possibly due to this South American strike. Seasonally speaking, however, soybean futures do turn the corner right about this time so I’m happy to be with the new-found trend.
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