A look at the January soybean chart indicates that
prices are roughly the same price level as they were at the end of
October. Taking out a couple of extreme sessions from both the upper end
and the bottom end, January soybeans have been range bound between
$10.20 and $10.50. Currently prices are near the low end of this range.
Generally speaking, the market has been stronger than what we would
have expected given the bearish fundamentals.
The USDA is
providing some new information as "food for thought" moving into next
year. In its baseline projections, the USDA recently indicated they'll
be projecting soybean acreage next spring at 84.0 million acres,
virtually identical to planted acreage this year. It further projects a
slowdown in usage resulting in rising projected ending stocks pegged at
519 million bushels for the next crop year. This compares with recent
projections of 410 million bushels carryout for the 2014/15 marketing
year. (more)Please share this article
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