Soybean futures have taken a turn south toward 18-month lows & support as the USDA has recently stated the Brazilian soybean harvest is expected to fall short of the once anticipated 100M ton mark. Soybean futures are down .17 cents today currently trading at $8.67 per bushel at the Chicago Board of Trade.
The Brazilian soybean 2015-2016 harvest, which begins after Christmas, is now estimated by the USDA to be 98.5M tons which is still considered to be a record crop, but less than the 100M-101.9M tons estimated by government officials. Other professional analysts also called for soybean harvest figures there to be above the 100M ton estimates.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the soybean futures market by stating, “The Brazilian soybean season started out with such dryness that it is surprising they’re still seeing a record crop.” Levy added, “They’re getting the need rains at this point in the soybean growing season, but will the drier growing regions get the necessary moisture is now the question.”
The trend for soybean futures has accelerated downward today. Soybean futures have a pretty good support level just above the $8.50 level, below that is open territory.
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