S.American Growers’ Optimism is a Plus for Soybean Futures

Soybean futures are finding a boost with the optimism of South American soybean growers.  One soybean farmer is so confident soybean (futures) prices will remain near record highs says he’ll expand his soybean crop to his neighbor’s (unusable) cattle pasture.

Since Brazil has cracked down on logging near the Amazon River, residents in the vicinity plan on expanding their soybean plantings to an area the size of “Jamaica.”  Soybeans are undoubtedly the most profitable crop for these farmers in this point in history.

Kevin Craney, senior commodities broker for RJO Futures in Chicago, commented today regarding the current soybean futures situation, “Export demand remains strong with soybeans at the high price levels. There is more price-rationing to be done.”  Craney adds, “South America will need to produce a record (soybean) crop in the next growing season in order to help boost world soybean supplies.”

Soybean futures had sold-off from their September 4th high, but now the market has resumed its uptrend yesterday and is “testing” the high.  I am looking for a low-risk way into the long side of this soybean futures market, however, I am noticing little follow-through…

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