Brazilian Drought Boosts Soybean Futures

With worsening drought conditions in South America, there is the outlook global soybean harvests will be less than expected and more demand for US soybean supplies.  Soybean futures are up for a second week in a row on this news.

Brazil has the district status as the world’s second biggest soybean producer, but the USDA expects the once estimated 68.5M ton forecast to now be shy by 2.5M tons.  This soybean shortage comes at a time of growing Asian demand…

Soybean (futures) continue to lead all grains higher.  With continued rumors of production cuts’ coming from South America this continues to support the soybean market. As we move into the spring planting season we should continue to see new crop soybeans bid for acres and trade higher,” stated Kevin Craney, a senior commodities broker for R.J. O’Brien Futures in Chicago, in regards to the current soybean futures situation.

The trend for the entire soybean futures complex remains up with no “top” in sight.  We are long all three soybean futures markets contracts going into the long Easter Holiday.  Have a great weekend!

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