CBoT Soybeans: Supply and Demand Concerns Are Seemingly Priced In

Chicago soybean futures are down this morning after hitting a four-year high in the previous session. Strong demand and concerns about global supply keep the market tense.
Supply and demand concerns are priced into the wheat and soybean market at current price levels.
The markets yesterday extended a rally triggered by the US Department of Agriculture (USDA) monthly harvest report on Tuesday. According to this, stocks of corn and soybeans will fall this marketing year to the lowest level in seven years.
The agency estimated ending soybean stocks in the US at 190 million bushels, up from analyst projections of 235 million.
Earlier this week, the USDA cut its 2020-21 US soybean yield estimate to 50.7 bushels per acre, below the lowest value traders' expectations.
The South American weather must be favorable for the vegetation there in the coming months for a decent harvest to limit the increasing pressure on US soybean stocks, Rabobank says.
In various grain ports in Argentina, the loading of five cargo ships with soybean meal and soybeans has stalled for days due to strikes by dock workers.
Commodity funds were net sellers of CBOT futures contracts on corn, wheat and soybean meal and net buyers of soybeans and soybean oil yesterday.

Hansa Terminhandel GmbH
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