The CBoT soybean prices yesterday reached a two year high, driven by rising prices of soy tat, which reached an 18-month peak. The whole thing is justified by economic problems of the soybean industry in Argentina, a major exporter of these two products.
Taken speculative long positions contribute to the rally, since strong rains there in April in Argentina, that four to eight million tonnes of the Erne seem lost. Exports could decline by 25%.
Non-commercial investors have continually increased their long positions and reached a nine-month high on long contracts with its involvement in soybean meal. The Rabo-Bank warns that it comes to courses setbacks, once investors begin to take their profits.
Yesterday, even institutional investors were buyers of long positions in corn, soybeans and wheat.
