Soybeans Fall, Market Still Looks Bullish
Soybeans fell today after yesterday’s rally. The oilseed reached the highest level in more than a week and may yet rally again amid favorable fundamentals.
China, the biggest soybean consumer, is growing and this means increasing demand. The US Department of Agriculture reported yesterday that the United States exported 345,000 metric tons of soybeans to China and 330,000 tons to an unknown destination. Experts speculated that this destination may also be China.
At the same time, supply is endangered by backlog in Brazilian ports. According to SA Commodities, 10.3 million tons of soybeans are awaiting shipment.
Growing demand and supply disruption is a bullish situation, giving traders hope that prices for the agricultural commodity will rise again.
May futures for soybeans fell $0.0225 (0.15 percent) to $14.6425 per bushel as of 4:23 GMT on CBoT today. Yesterday, prices touched $14.8175 per bushel, the highest level since February 22.
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