Thanks to rising foreign demand and more cutting supplies, soybean prices had been trading at their most favorable levels in almost seven years. Is this a case of a simple near-term drop or a part of a larger downward trend for the commodities sector?
March soybean futures fell $0.1975, or 1.39%, to $13.97 per bushel at 12:08 GMT on Tuesday on the Chicago Board of Trade (CBoT). Soybeans are off to a roaring start to 2021, raising near 7% in the first few weeks of trading.
Investors had been searching within the latest General Administration of Customs data, highlighting the world’s prime agricultural market had imported record volumes of soybeans and corn last year. Traders had already been conscious of this, so it is more than possible that they priced this in. Nevertheless, new figures imply that Chinese crushers’ weekly pace of soybean cargo purchases climbed to a four-month high in the week closing January 15, notwithstanding declining margins.
As stated by the National Oilseed Processors Association (NOPA), the monthly US soybean crush developed to the second-highest monthly level in December, ending the busiest year of processing for the industry on record.
Brazilian soybean exports fell in January
New Commodity Futures Trading Commission (CFTC) weekly engagements of traders report explained that non-commercial traders, including hedge funds, decreased their net long positions in soybeans. The same report also recorded that large critics raised their net long positions in corn while appending their wheat net short jobs.
In other data, S&P Global Platts announced that Brazilian exports fell in January between collapsing inventories. Farmers had reportedly traded close to all of their old crop soybean stocks. In the first half of January in 2020, the South American country shipped 630,000 metric tons. In the first half of January this year, Brazil only exported 17,500 metric tons.
Farmers are focusing on selling their crops domestically to get a better repayment on their investment. Notwithstanding the dull tone, soybean prices are still calculated to rise in 2021 due to short supplies, strong demand, and postponed harvest.
In other agricultural markets, March corn futures slid $0.0175, or 0.33%, to $5.2975 per pound. March wheat futures totaled $0.09, or 1.33%, to $6.845 a bushel. March coffee futures dropped $0.0125, or 0.98%, to $1.269 a pound.
COMMENTS