Soybean Futures Reached Record on Reduced Yield

Just yesterday, soybean futures touched an all-time record high as the USDA forecasts continue to dwindle lower.  It appears the drought in the Mid-West has cut into the soybean yields more than the government has expected.

As world population grows, and demand multiplies, soybean production is expected to fall 15% from this time last year.  This year’s yield will be the smallest soybean crop since 2003.

Christian Moreno, a commodities broker at HighGround Trading in Chicago, commented today regarding the current soybean futures situation, “Every time they get into the fields the yields move lower…eventually the needs for soybeans must be met.”  Moreno added, “(Soybean futures) prices will move higher once they realize they can no longer wait for lower prices.”

The trend for soybean futures is UP with no top yet in sight.  I am awaiting a pull-back of any magnitude for a low-risk way back in to the long side of soybean futures – which has been the most profitable market of all thirteen markets I trade so far this year

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