Soybeans ($SOY) Commodity Forecast: Up 2.5% Today

What is Soybeans?

Soybeans are a widely traded commodity used for various purposes such as food production, animal feed, and biofuels. The market for soybeans is influenced by factors like supply and demand dynamics, weather conditions, and global trade policies.

Why is Soybeans going up?

SOY commodity is up 2.5% on Nov 8, 2024 17:06

• The bullish movement in soybean prices today can be attributed to the rebound from a recent nine-week low, supported by strong U.S. demand and rising crude oil prices.
• The increase in soybean futures was also driven by higher U.S. soybean exports reported by the USDA, indicating healthy demand for the commodity.
• Despite the downward pressure from a stronger U.S. dollar and ample supply, the market sentiment turned positive due to the supportive factors of demand and export figures.
• The shift in planting patterns in Argentina and Brazil towards soybeans due to low corn prices and expected dry conditions also contributed to the bullish movement in soybean prices.

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SOY News

Soybean Prices Slip on Strong Dollar and Ample Supply

Soybean futures declined to about $9.8 per bushel, pressured by a stronger U.S. dollar as traders awaited the U.S. presidential election outcome, with markets increasingly anticipating a win for Donald Trump. Ample U.S. soybean supplies also added to the downward pressure. Meanwhile, Argentina’s soybean production forecast for 2024/25 was raised to 52 million metric tons, driven by farmers shifting from corn to soybeans in response to low corn prices and expected dry conditions. Argentina’s soybean planted area is projected to grow by 7% to 44 million acres, the largest increase since 2015–16. In Brazil, planting is moving forward, with 52.9% of the expected area sown, up from 50.6% last year. Brazilian soybean acreage for the 2024–25 season is expected to increase by 2.8% to 117 million acres, marking the slowest growth in a decade due to lower profit margins.

Soybean Futures Rebound

Soybean futures rose to nearly $10 per bushel, rebounding from a nine-week low of $9.5 in late October, bolstered by strong U.S. demand and rising crude oil prices. The USDA reported U.S. soybean exports at 2.3 million metric tons as of October 24. Meanwhile, Argentina’s 2024/25 soybean production forecast was raised to 52 million metric tons, as farmers switched from corn to wheat due to low prices and anticipated dry conditions. Argentina’s soybean planted area is expected to expand by 7% to 44 million acres, marking its largest increase since the 2015–16 season, according to the Secretariat of Agriculture. Meanwhile, Brazil’s soybean planting is progressing, with 52.9% of the expected area planted, compared to 50.6% last year, per Patria Agronegocios. Brazilian soybean acreage is projected to grow by 2.8% to 117 million acres for the 2024–25 crop season, according to CONAB, marking the slowest growth in a decade due to lower profit margins.

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Soybeans Price History

08.10.2024 - SOY Commodity was up 2.5%

• The bullish movement in soybean prices today can be attributed to the rebound from a recent nine-week low, supported by strong U.S. demand and rising crude oil prices.
• The increase in soybean futures was also driven by higher U.S. soybean exports reported by the USDA, indicating healthy demand for the commodity.
• Despite the downward pressure from a stronger U.S. dollar and ample supply, the market sentiment turned positive due to the supportive factors of demand and export figures.
• The shift in planting patterns in Argentina and Brazil towards soybeans due to low corn prices and expected dry conditions also contributed to the bullish movement in soybean prices.

12.07.2023 - SOY Commodity was down 7.2%

• The bearish movement in soybeans can be attributed to the following factors:
• 1. Rainy weather and good growing conditions: The rainy weather across the key U.S. crop belt and forecasts for favorable growing conditions in August have raised expectations of a strong soybean crop. This has led to increased supply expectations, putting downward pressure on soybean prices.
• 2. Strong supply from China: The news of private exporters reporting the sale of a significant amount of soybeans to China for delivery in the future marketing year indicates a strong supply from China. This suggests that the demand for soybeans may not be as robust as previously anticipated, further contributing to the bearish movement.
• 3. Previous concerns easing: The bearish movement in soybeans comes after the market reached an over 1-year high fueled by concerns over crop yields in the United States and improved Chinese demand prospects. With these concerns easing, investors may be taking profits and driving down prices.
• Overall, the bearish movement in soybeans can be attributed to favorable growing conditions, strong supply from China, and profit-taking after previous concerns eased.

11.07.2023 - SOY Commodity was down 5.1%

• Soybean futures fell to a 5-week low due to rainy weather in the key U.S. crop belt and favorable growing conditions expected for August.
• The market was also affected by the news of a large sale of soybeans to China, indicating strong demand.
• The previous surge in soybean prices was driven by concerns over crop yields in the United States and improving Chinese demand prospects.
• Overall, the bearish movement in soybeans can be attributed to favorable weather conditions and increased supply expectations, along with the absence of immediate concerns over crop yields and demand.

10.06.2024 - SOY Commodity was down 2.9%

• Soybeans hit a 10-week low at 1142.00 USd/Bu, signaling a significant downward trend.
• Over the past 4 weeks, there has been a continuous decrease with a substantial 17.04% drop in the last 12 months, indicating a persistent bearish sentiment.
• Possible factors contributing to the downward pressure on soybean prices may include oversupply, trade tensions affecting export demand, and unfavorable weather conditions impacting crop yields.

14.07.2024 - SOY Commodity was down 6.3%

• The near 4-year low in soybean prices reflects a pronounced downward trajectory.
• Ongoing price declines indicate a potential imbalance between supply and demand.
• The market's bearish trend may be influenced by trade disputes, weather-related harvest issues, or changing consumer preferences impacting soy product demand.