Farm Progress

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

Kevin Van Trump, Founder

December 27, 2016

1 Min Read

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.


About the Author(s)

Kevin Van Trump


Kevin is a leading expert in Agricultural marketing and analysis, he also produces an award-winning and world-recognized daily industry Ag wire called "The Van Trump Report." With over 20 years of experience trading professionally at the CME, CBOT and KCBOT, Kevin is able to 'connect-the-dots' and simplify the complex moving parts associated with today's markets in a thought provoking yet easy to read format. With thousands of daily readers in over 40 countries, Kevin has become a sought after source for market direction, timing and macro views associated with the agricultural world. Kevin is a top featured guest on many farm radio programs and business news channels here in the United States. He also speaks internationally to hedge fund managers and industry leading agricultural executives about current market conditions and 'black swan' forecasting. Kevin is currently the acting Chairman of Farm Direction, an international organization assembled to bring the finest and most current agricultural thoughts and strategies directly to the world's top producers. The markets have dramatically changed and Kevin is trying to redefine how those in the agricultural world can better manage their risk and better understand the adversity that lies ahead. 

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