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Soybean Futures Expected to Decline on Excellent Weather Conditions and Speculative Liquidation

Strategic Insights

— 1 min read

Soybean futures on the Chicago Board of Trade (CBOT) are expected to start Monday's session on the defensive, with market participants anticipating losses of 20 US cents per bushel. The forecasted decline is attributed to excellent weather conditions for crop development over the weekend and the expectation of more of the same in the coming week. This, combined with weakness in overnight e-CBOT trade and fresh speculative liquidation, is likely to weigh on soybeans at the open.

Key Takeaways:

  • Soybean futures are expected to decline by 20 US cents per bushel at the start of Monday's session.
  • Excellent weather conditions for crop development over the weekend and the expectation of more of the same in the coming week are contributing to the anticipated decline.
  • Weakness in overnight e-CBOT trade and fresh speculative liquidation are also factors in the expected decline.
  • The November CBOT soybean contract is technically oversold, but the trend remains bearish, indicating that sideways to lower prices are possible near term.
  • CBOT soymeal futures are expected to be $3 to $7 per short ton lower, taking their cue from the weakness in soybeans and the overall lack of fresh demand.
  • Soyoil futures at the CBOT are being called 5 to 20 points lower, with the anticipated losses in soybeans stimulating much of the downward price action.
  • Stochastics and the Relative Strength Index (RSI) are oversold but remain bearish, signaling that sideways to lower prices are possible for soybeans and soyoil.

Statistics:

  • Soybean futures are expected to decline by 20 US cents per bushel.
  • CBOT soymeal futures are expected to be $3 to $7 per short ton lower.
  • Soyoil futures at the CBOT are being called 5 to 20 points lower.
  • The stochastics and the RSI for soybeans are oversold but remain bearish, indicating a trend of sideways to lower prices.
  • The 10-day moving average for soybeans needs to climb above $6.34 3/4 for the downward slide to potentially come to a stop.

Sources:

  • Resource News International via COMTEX (Copyright 2004 Resource News International News Provided by COMTEX http://www.comtexnews.com)

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