Soybean Futures Lower With Expanding Plantings

Soybean futures retreated today after such a large “up” day yesterday once forecasters reported the possibility of soybean production climbing to a record next season. Farmers, especially in the Northern Hemisphere, are expanding soybean planting and soybean futures are predictably responding.

The Hamburg, Germany based research group claims world soybean production will be just over 6% higher than the prior marketing year. They also stated the total worldwide soybean harvested area can reach an all-time high 4% more than one year ago.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, had this to say regarding the current soybean futures situation, “The soybean (futures) markets are separated into old crop and new crop. The tight supplies of old crop soybeans due to aggressive exports providing support while index funds rolling out of the July contracts is providing some resistance.” Moreno adds,With the improving weather we are seeing and soybean planting at 78% complete (they were expecting 75%) look for beans to move lower.”

The technical trend for soybean futures remains up, but I stopped myself out of the long position earlier this morning because of the abrupt reversal. I am still bullish soybean futures until a more clear picture of this market unfolds.

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