Argentina Crop Concerns Lift Soybean Futures

The South American soybean crop is being watched closely.  The outlook has changed recently now that warm, dry weather is expected for the first week and a half next month which would reduce soybean crop yields in Argentina while boosting demand for US soybean exports.

A Maryland-based meteorologist is saying the early February expected precipitation won’t be enough after one month of below normal rain, and lack of moisture problems will continue.  For vegetable oil, and animal-feed, Argentina is the biggest shipper of these (soybean-based) products.

…this current (soybean futures) price increase is weather related.  If we see more dry weather (soybean futures) will move higher yet,” says Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current soybean futures situation.

This is the third month for soybean futures trading sideways.  Recently, soybean futures have broken out to the upside, but before I can get long this market I’d like to see a more clearer picture develop.

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