Reserves Seen Small but Soybean Futures Down

Domestic soybean inventories are expected to be the lowest they have been since 1973 after this harvest – the smallest soybean harvest reportedly in nine years.  The US exports more soybeans than any other nation.

Analysts are predicting $20 soybean futures prices by the end of the year with soybean reserves the lowest in four decades.  Farmers are expected to produce 13% less soybeans than this time last year after the worst drought seen since the 1930’s.

Barb Levy, chief director for Futures & Options Xecution’s Futures Division in Chicago, commented today regarding the current soybean futures situation, “Soybeans came under slight pressure today due to some liquidation ahead of Wednesday’s USDA report, but the bullish sentiment continues.”  Levy added, “Traders are still concerned about further cuts in the harvest yields as the crop continues to suffer the historic drought conditions and continued solid worldwide demand.”

The trend for soybean futures remains up, however I was stopped out of a long position in soybeans today with the biggest loss in soybeans than I can remember.  Consider this: we are trading in one of the most bullish circumstances in the grain markets, but some of these grains have been trading “sideways” for over a month now.  I am aware of this.

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