Soybean Futures at Risk with the Drop of Brazilian Real

Soybean futures have been put on notice coming into the northern hemisphere harvest, but in the southern, the currency crisis in Brazil has been a boon to soybean farmers there looking to unload their crop. Soybean futures, down four out of the last five trading sessions, is holding steady (up just over a penny) currently near $8.62 per bushel at the Chicago Board of Trade.

The Brazilian Real has fallen to a record low compared to the US Dollar, but the fall of the currency is setting-up favorable conditions for farmer’s there to see record high soybean sowings, despite early dry weather conditions. This Brazilian currency crisis, which provides great support for those farmers, may be an Achilles heel to farmers elsewhere with soybeans plentiful in supplies and stocks.

Soybean futures’ trend is down with no bottom yet in sight, however, the market is approaching long-term support that goes back to late 2012/early 2013. With harvest period in sight, I expect soybean futures to remain choppy to down at best until clearer fundamental conditions are learned after harvest.

Share

Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report
 

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
 
*First Name:
*Last Name:
*E-mail:
*Day Phone with
Area Code:

Categories

Follow Us on Twitter