Soybean bulls continue to point towards strong demand from the Chinese.
In fact, there's been a lot more talk inside the trade about Chinese meal demand increasing exponentially as their government shuts down a large portion of the DDGs being imported.
The bears however are pointing to very real possibility that the USDA could raise last years U.S. production number in todays report and the fact Sept. 1 stocks could be a bit more burdensome than some are anticipating. The bears also continue to point towards the possibility of the USDA raising both their yield and acreage estimates for the U.S. crop in the upcomingmonthly "Supply and Demand" report.
Keep in mind, that report is just seven short trading days away. It's just tough to extend a major rally when the trade continues to talk about ending stocks potential pushing north of 400 million bushels.
As a producer, I continue to keep my hedges in place. As a spec, I continue to like the thought of being a longer-term buyer but still see no need to get in any hurry. There's still a ton of market focus being placed on the U.S. crop and it appears to be getting only larger.
In addition the early South American weather is mostly cooperative. In other words, there's really nothing out there in the headlines to spook the bears. Keep you eye on todays USDA data, I imagine it could create some loud noise within the soybean market.