US Soybean Futures Expected to Open Lower on Monday

Strategic Insights -

Soybean futures are anticipated to trade lower on Monday as a stronger dollar and harvest pressure combine with improved South American planting weather. The Chicago Board of Trade is expected to see soybeans open 1 to 2 cents lower, reflecting the market's recent shift following a 14-month high. Traders have digested government estimates of lower soybean and corn supplies, and now face a lack of fresh news to fuel the rally.

Key Takeaways:

  • US soybean futures are expected to open 1 to 2 cents lower on Monday due to a stronger dollar and harvest pressure.
  • Improved South American planting weather, particularly in Brazil, is easing concerns about the soybean crop and will pressure prices.
  • The US Department of Agriculture announced private export sales of 120,000 tons of soybeans to China for delivery in the 2010-11 marketing year.
  • The next near-term upside technical objective for soybean bulls is pushing and closing November prices above $12.00 a bushel.
  • The next downside price objective for bears is pushing and closing prices below $11.35, the bottom of an upside price gap on the daily bar chart.
  • Telvent DTN, a private weather firm, expects improved planting conditions in Brazil due to increased shower activity and seasonal temperatures.

Statistics:

  • November soybeans were down 1 1/4 cents to $11.83 3/4 per bushel.
  • January soybeans slipped 3/4 cent to $11.95 per bushel.
  • December soymeal was up $1.30 to $329.50 per short ton.
  • December soyoil was down 0.36 cent to 47.41 cents per pound.

Sources:

  • Dow Jones Commodities News via Comtex (2010) - Citing data from the Chicago Board of Trade.
  • Dow Jones Newswires (2010) - Article authored by Ian Berry.
  • Telvent DTN (private weather firm).
  • US Department of Agriculture (announced private export sales of 120,000 tons of soybeans to China for delivery in the 2010-11 marketing year).