CBOT soy outlook: Economic worries stoke fear of slower demand

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

U.S. soybean futures are poised for a lower start, extending the trend of falling prices on fears a weak global economic outlook will dampen demand.

CBOT soybeans are called to open down 8 cents to 10 cents.

In overnight trading, Chicago Board of Trade November soybean futures were down 8 cents or 0.6% at $12.50 a bushel.

Prices slumped to a new low for the year overnight, with the most active November contract down more than $2.00 a bushel from the Aug. 31 high of $14.65 a bushel.

The influence of external financial markets will have a strong impact on prices amid renewed worries of the world's economic outlook.

"Traders and analysts continue to revalue what the real price for soybeans are amid fear of slumping demand," Don Roose, president of Iowa based brokerage U.S. Commodities, said.

Soybeans are fundamentally undervalued and deeply oversold, but with South American production capable of buffering any U.S. supply tightness, global economic fear will continue to limit buying, Roose said.

Seasonal harvest weakness will add to the lower price theme, as traders brace for an influx of freshly harvested U.S. soybeans to enter the supply chain in the next month.

Industry analysts anticipate traders will remain hesitant to add risk, as they anxiously await actual yield results from the autumn harvest.

Yet, soybean futures should draw support from traders covering some recently sold positions ahead of Friday's report on stocks in all positions as of Sept. 1 from the U.S. Department of Agriculture.

"Although a rally into the report would make sense, trying to catch the falling knife on these big price breaks is not advisable in most situations," MF Global broker Joseph Vaclavik wrote in a morning market note.

Demand from users of soybeans could help slow the decline in prices, particularly with China, the world's top importer of the oilseed buying U.S. supplies on the price break last week.

The USDA on Monday is scheduled to release its weekly export inspections report at 11:00 a.m. EDT and its weekly crop progress report at 4:00 p.m. EDT. Analysts anticipate federal forecasters will estimate the soybean harvest to be 10-12% complete.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Related Articles

No matching related articles at this time.

Comments (0) Leave a comment 

e-Mail (required)


characters left

Declining Weigh Blending System

Ranco Declining Weigh (DW) is the standard in fertilizer blending because of the speed and accuracy of the blending process. ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form