Soybean futures are rebounding from their lowest levels in ten months on bargain buying and concerns over basic supply and demand. The agricultural commodity has been sliding by double-digits this year, driven primarily by the coronavirus that has crippled the Chinese economy. With Beijing gradually hitting the reboot button, there are concerns that the world’s biggest soybean importer will not be able to meet the provisions of the phase one trade deal. May soybean futures rose %excerpt%.0475, or 0.58%, to .265 per bushel at 16:28 GMT on Tuesday on the Chicago Board of Trade (CBoT). Soybeans fell to their lowest levels since May, but they have rebounded so far this week. Year-to-date, soybean prices have shed more than 13%. The agricultural commodity recovered on traders taking advantage
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Soybean futures are rebounding from their lowest levels in ten months on bargain buying and concerns over basic supply and demand. The agricultural commodity has been sliding by
May soybean futures rose $0.0475, or 0.58%, to $8.265 per bushel at 16:28 GMT on Tuesday on the Chicago Board of Trade (CBoT). Soybeans fell to their lowest levels since May, but they have rebounded so far this week.
The agricultural commodity recovered on traders taking advantage of some bargains as they ostensibly prepare for the global rebound that could happen by the end of the year. Investors might also be buying the dip on food security issues.
In Argentina, 80% of farmer’s crops are damaged due to the intense drought that has affected the country’s food supply, according to the trade association Rosario Board of Trade. Not even the recent heavy rainfall could mitigate the damage.
The US Department of Agriculture (USDA) is reporting that domestic inspections for shipments to China fell approximately 25% to zero in the week ending March 12. In fact, for the current exporting season, the US only has one cargo of soybeans left to ship to Beijing. The outstanding balance for soybean shipments slipped to its lowest level since the 2014–2015 marketing year. Once the final cargo is sent to China, sales to China will have dried up for the first time since May 2006.
Meanwhile, soybean stockpiles at Chinese ports are estimated to slip below four million tons this month, a
In other agricultural markets, May wheat futures advanced $0.0675, or 1.36%, to $5.0475 per bushel. May corn futures tumbled $0.08, or 2.26%, to $3.4675 a pound. May orange juice futures surged $0.0235, or 2.38%, to $1.0125 per pound.
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