Soybean Futures Respond on Improving Demand

Planting delays in the Southern Hemisphere is increasing the outlook for improved demand for American soybean supplies.  Soybean futures have closed “up” three days in a row on this speculation.

The soybean growing region in Argentina has experienced rains four-times the normal amount within the last two months – with another storm expected in a week.  Plus, the world’s biggest soybean consumer – China – might increase their soybean imports since manufacturing have improved recently.

Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, stated today regarding the current soybean futures situation, “Soybean futures saw gains today as reduced U.S. crop figures from the drought and tight South American supplies from last season continues to be a bullish force in the face of strong soybean demand out of China.”

Soybean futures appear to be working their way out of a technical downtrend, and why we are long.  Soymeal is the strongest of the three soy-product contracts, and this market has turned the corner in a new uptrend in my work.

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