Favorable Weather A Downer for Soybean Futures

With a global soybean production that’s forecasted to reach record amounts, soybean futures dropped on the outlook of current favorable weather in most of America’s Midwest will boost yields even further.  Soybean oil futures were down the most today, followed by soybean futures and then soymeal.

A major weather forecaster says current rainfall that’s delaying planting in the Illinois & Iowa region is expected to ease in the next week and a half.  Also in the forecast is temperatures above normal.
           
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say regarding the current soybean futures situation, “Soybean prices continue to slide as weather conditions are conducive to higher yield potential. Torrential down pour across much of the central Midwest has occurred over the past few days, however, extended forecasts point to less rainfall in the interim.”  Craney adds, “With yield forecasts high, the (soybean futures) market will remain under pressure.”

Soybean futures have technically turned the corner to a down-trending market in my work.  I am trying to sell soybean futures short, but now think I will let Friday’s USDA report pass before doing anything.

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