Soybean Futures Rocked by Harvest Forecast Cut on South America Crops

Soybean futures sky-rocketed in early trading session hours after the Int’l Grain Council announced the global soybean production will be less than estimated just last month.  The smaller soybean production outlook is said to be from deteriorating prospects for harvest due to adverse weather.  This is no surprise to readers of this blog.

Soybean farmers globally will harvest almost 1.5% less than the amount estimated only last month (for the 2013-2014 season).  Brazil, the world’s biggest exporter of soybeans, is estimated to produce 2.5% less than previously forecasted, while Argentina is expected to be 1.8% less.

Soybeans remain well bid due to the lack of cancellations from China and reduced production from South America. While the soybean market is technically overbought, any retracement will be met with support due to the supply fundamentals,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, regarding the current soybean futures situation.

Soybean futures trend remains up with no top yet in sight.  When I realized soybean futures couldn’t hold it’s gains, I attempted to exit both soybeans and soymeal – but just missed my target for soymeal.


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