CBoT soybean prices are already declining for the third consecutive day. The pressure comes from high inventories, which we are likely to see on Friday by the USDA in the report on US quarterly holdings. In addition, from the hitherto slow US exports and higher estimates for the upcoming harvest in Brazil.
Overall, there is an oversupply of soybeans on the world market, and the oncoming harvest in Brazil will put even more pressure on the prices that my Singapore retailer this morning in their trading startup market reports. But there are also concerns about the impact of drought in Argentina on the local soybean harvest this year.
Analysts expect the USDA in its WASDE report on Friday to estimate US soybean ending levels higher than last year's date. This is justified by the disappointing exports as well as quality problems.
The Brazilian soybean harvest 2017/18 is estimated by local consultants to be 111.8 million tons, 1.9% more than in the previous forecast. The farmers there harvested 114 million tonnes last year.
Text: HANSA Derivatives Trading GmbH / / Graphic:Saxo Trader 
