CBoT soybeans prices continue to rise this morning, the fourth day in a row, so it can now be assumed that the trading week ends with a positive sign. Traders hope that China will continue to buy US beans because the crop in Argentina is weak due to the drought there.
China's reluctance to buy is undermining US exporters and one must also expect China to take further action in the US trade dispute that could harm US agriculture.
US weekly exports of soybeans were reported yesterday by the USDA at 537,900 tonnes. Analysts had assumed 800,000 to 1.4 million tons.
Soybean prices on the US spot market are visibly on the decline, while politicians are placing a dangerous minefield that can trigger new market impulses at any time. This writes this morning the agricultural strategist of the Commonwealth Bank of Australia.
Investors are extremely heavily invested in long positions and could trigger a sell-off in the event of a negative market momentum.
On the other hand, ever smaller crop estimates for Argentina support the stock market prices for soybeans.More than half of the soybean area in Argentina is now harvested and the average yield is 2.4 tonnes / hectare. The grain exchange in Buenos Aires warns that the yield can be reduced in further sales. The long-lasting dryness with high temperatures has brought yield losses. In previous years, the yield per hectare was 2.9 tonnes.
Text: HANSA Derivatives Trading GmbH / / Graphic: Saxo-Trader 
