is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist
Grain market viewpoint

Has the soybean market finally focused on fundamentals?

Chinese demand for soybeans has been strong but questions abound over future growth and how demand will shift to South America.

Soybean prices are flat to start the morning Friday but have fallen by more than -.60 cents from the most recent December 6th high of $10.71^2.

Technical gurus are curious if the market can hold psychological support at $10 per bushel or is $9.80 perhaps the more nearby level of support? Chinese demand has been good but there's lots of questions about future growth and how much of their demand will shift towards South America?

I remain extremely patient from this point forward, having secured all downside risk for any remaining old-crop bushels and having reached my goal of reducing 40% of my new-crop price risk. As a spec I am also staying extremely patient, believing there are easier opportunities in other asset classes. I see nothing in the soybean market that looks like a layup.

As we turn the page and look to 2017, I'm targeting the early-March time frame as a possible window for more extreme price volatility.

 GET THE DAILY VAN TRUMP REPORT HERE

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish