Soybean Futures Improve with Chinese Demand

After last week’s big market reversal following the USDA Crop Production report, soybean futures have bounced back significantly.  The recent news for bullishness is the government announcement of increased US soybean exports to China.

Specifically, the USDA reported today US soybean exporters sold just under 700,000 metric tons last week at this time only after two consecutive weeks of USDA cancellation of soybean & products.  China alone accounted for almost 70% of the recent soybean exports and are on the books for an additional 123,000 tons of soybeans after September.

Jim Allen, licensed futures & Forex broker at Foremost Trading in Geneva IL, had this to say regarding the current soybean futures situation, “As US supplies of soybeans continue to shrink, the global markets continue to show increased demand.  Soybean (futures) should show a bullish trend as it breaks out of this sideways action.”  Allen added, “It all goes back to the age old law of supply vs demand.”

The trend for soybeans is technically down at this time, but after looking at a daily soybean futures chart it has really been “sideways” for a month-and-a-half.  I am awaiting a clearer picture for soybean futures before committing long, or short.

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