Yesterday and this morning, CBoT soybean futures prices are on the rise again. Market participants now believe that demand for US soybeans will improve again, even though the harvest in Brazil is expected to be very large.
The supply of soybeans on the global market exceeds demand and there are hardly any problems with logistics or the processing of contracts. Nevertheless, market participants in the US are hoping for better demand from China, as a delegation from the Chinese government is currently traveling to the US to sign the first part of a bilateral trade agreement. In this agreement, China promises to significantly increase its purchases of US agricultural commodities.
However, any upward price movement is limited by the forecast of a very large soybean harvest in Brazil. The USDA expects the upcoming soybean harvest in Brazil to reach 123.5 million tons. Last year, the figure was 117 million tons.
Source
HANSA Terminhandel
