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Soybean Futures Expected to Decline Amid Improved Weather Outlooks and Exporter Halt

Strategic Insights

— 1 min read

Winnipeg, Manitoba, is set for a significant drop in soybean futures, with losses of 20 US cents per bushel possible, according to market participants. Improved weather forecasts for the main soybean growing regions in the US Midwest are contributing to the decline. The halt of as many as three US and South American soybean vessels earmarked for China due to default payments from Chinese buyers is also adding downward pressure on soybean prices.

Key Takeaways:

  • Soybean futures on the Chicago Board of Trade (CBOT) are expected to start the session on the defensive with losses of 20 US cents a bushel possible.
  • Improved weather outlooks for the main soybean growing regions of the US Midwest are contributing to the decline.
  • The halt of as many as three US and South American soybean vessels earmarked for China due to default payments from Chinese buyers is adding downward pressure on soybean prices.
  • Losses in e-CBOT soybean activity overnight are expected to weigh on values.
  • CBOT soyoil futures are seen opening 30 to 40 points lower, while CBOT soymeal prices are expected to be down $3.00 to $4.00 per short ton.
  • The November CBOT soybean contract closed near the session low on Friday and at a weekly low, which is seen as bearish heading into the price activity for this week.
  • The next downside technical objective for the bears is closing prices below the psychological support level of $6.00.
  • Market participants attribute the decline to improved weather forecasts and the halt of soybean exports to China.

Statistics:

  • Losses of 20 US cents per bushel possible in soybean futures.
  • Expected losses in e-CBOT soybean activity: 20 US cents per bushel.
  • CBOT soybean futures: expected opening 20 US cents per bushel lower.
  • CBOT soyoil futures: expected opening 30 to 40 points lower.
  • CBOT soymeal prices: expected down $3.00 to $4.00 per short ton.

Sources:

  • Resource News International.
  • COMTEX (http://www.comtexnews.com).
  • Chicago Board of Trade (CBOT).

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