As the Brazilian soybean harvest is expected to be very large and China's demand for feed for fattening pigs is smaller, CBoT soybean futures prices have been under pressure for several days.
In addition, market sentiment is being depressed by an Iranian missile attack on US troops in Iraq, as there are fears that tensions in the Middle East will escalate further.
There are currently no supply problems with agricultural commodities on the global market and the situation in the Middle East is bullish for crude oil and gold, but bearish for most other commodities. This is what traders in Singapore are saying this morning.
Traders in the commodity markets are paying close attention to the weather conditions in Brazil and Argentina; Brazil is already starting its soybean harvest, which is exceptionally good. In Brazil's main growing region of Rio Grande de Sul, harvest conditions are currently excellent.
Tonight, Iran attacked US troops in Iraq with a missile. This is seen as retaliation for the US drone attack that killed a leading Iranian commander last week.
Source
HANSA Terminhandel
