Soybean futures poised to drop again regardless of robust data

Soybeans - Investors Mart

Soybeans are currently on track for another downfall that has been going on for three consecutive sessions, regardless of the previously released strong figures. This is after Benson Quinn Commodities suggested that the commodity has not been performing well for its two settlements.

BQC also said that there are always big movements that tend to come in threes, given its weak trading session last Friday. According to the released weekly briefing of traders after the market close in regards of Soybean’s positioning, the predictions of brokers on Friday’s weak overnight trade can possibly support its session today as it is currently searching for some underlying strength.

They added that private analyst currently finding another 50m bushel for its report this February and the US Department of Agriculture had lowered their export demand by 64m bushels for last month.

The price of Soybean in Chicago traded down in its previous deals by 0.4 percent to settle at $9.81 per bushel for the month of March. However, it just bounced from a recent decline of about $9.79 per bushel on its last settlement. This level has temporarily taken futures below at $9.80 ¼ per bushel, reaching under its 200-day moving average.

Still, the release figures from the USDA overnight on the Soybean crush last December came in unexpectedly higher, coming in at 176.4m bushels, higher by 173.3m bushels for November. Benson Quinn said the department may offset some of its export reductions with an increase about 25m bushels.

 

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