Brazilian Record Output Dampens Soybean Futures

The South American soybean production is expected to surpass North America as the world’s largest soybean grower after Brazilian officials stated they expect production to rise to a record this year.  Soybean futures fell today after this realization.

Forecasters in Brazil estimate soybean output to be 25% more this year than the previous year – two million metric tons more than US output.  The Brazilians also note soybean exports to rise by nearly four million tons compared to last year.

(Soybean) demand continues to shift away from the U.S. and toward South America.  This coupled with favorable weather and good production potential in South America continue to put pressure on soybean (futures) prices,” said Kevin Craney, a senior commodities broker for RJO Futures in Chicago, regarding the current soybean futures situation.

The trend in soybean futures is decidedly down, and this month we are seeing lows not since last June.  A major crop report will be released Friday so I’m trying to get short soybean futures under certain conditions.

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