Soybean Futures Stagnate on Promising Brazilian Harvest

Soybean futures were poised to test the February 22nd high but have backed off as much as .14 cents from yesterday’s close.  It appears the Brazilian soybean harvest is picking up and a record crop is expected.

The USDA stated last week they expect Brazil to produce a record 83.5M metric tons of soybeans this year, and become the worlds largest soybean exporter – surpassing the US.  In the meantime, Brazilian farmers have harvested 48% of the soybean crop (as of March 8th) which is 2% better than this time last year.

Demand for US soybeans has been coming under pressure recently due to developments coming out of Brazil. In addition to the  Brazilian (soybean) harvest being ahead of last year’s pace, their soybeans are reaching ports and being loaded on ships without any issues,” said Kevin Riordan, director of commodities research at Capital Trading Group in Chicago, regarding the current soybean futures situation.

The technical trend for soybean futures is up, but more like sideways trading dominates for the past 1.5 months.  With soybean oil futures trend clearly down and soybean meal futures also stagnate of a clear trend, I plan be selective of the opportunities we take.

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