Crop Report Mutes Soybean Futures Gain

Soybean futures paused in their gains before tomorrow’s USDA crop report.  The report is expected to show the domestic crop to be smaller than previously forecasted due to unusually dry weather since August.

Before the USDA is expected to update their projections, other analysts have estimated US soybean farmers to harvest almost 4% less soybeans than estimated only a month ago.  In the largest growing soybean producing states of Iowa and Illinois, they’ve only had as much as 5% of normal precipitation in the last month.
           
A warm August and September has surely hurt soybean yield prospects. With an already tight soy balance sheet, any cut in production will have a bullish effect on the market,”  said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the current soybean futures situation.

The trend for soybean futures is up.  I will look to initiate long soybean futures positions after tomorrow’s crop report.

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