Soybeans Futures Tank on Easing Demand

Soybean futures plummeted today as signs of waning soybean demand for soy oil and meal and favorable weather in America’s heartland.  Soymeal futures experienced its biggest one-day drop since March.

The USDA revealed today in a report that soybean exports last week tanked 32% and that soymeal and soy oil exports also fell to marketing year lows.  That with cooler weather over the next 10 days favoring soybean growing conditions also contributed to the market reeling.
           
Soybean (futures) suffered a steep lose as a rally to 10-month highs on Monday sparked selling by farmers that temporarily eased tight supply in some areas in my opinion,” said Mason Ching, Automated Trading Manager, Global Futures Exchange & Trading Company in Encino, CA, regarding the current soybean futures situation.  Ching added, In addition pressure stemmed from unconfirmed rumors that the world’s top soy importer, China, may sell 3 million tons of the (soybean oil) from government reserves, potentially reducing its demand for US soybeans.”

The trend for all soybean futures products is clearly down.  We have caught moves in all three markets this week, but remain short only soymeal.  I will look to reenter soybean futures and soy oil in a lower-risk fashion.

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