CBOT soy outlook: Higher; traders brace for tighter supply outlooks

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 expected to start higher Friday, driven by traders bracing for tighter supply projections in Monday's crop outlooks from government forecasters.

CBOT soybeans are called to open up 4 cents to 6 cents.

In overnight trading, Chicago Board of Trade November soybean futures were up 6 1/2 cents at $14.24 3/4 a bushel.

"The dominate issue for traders today is evening some positions ahead of Monday's reports after Thursday's declines," said Don Roose, president Iowa based brokerage U.S. Commodities.

Industry analysts anticipate prices holding within a narrow trading range, with traders unwilling take on added risk, as they await more clarity on eventual crop production.

The uncertainty of crop production will continue to support current price levels. But without a clear picture of yield potential, many traders will be cautious and stay on the sidelines ahead of Monday's reports, Roose added.

The U.S. Department of Agriculture is scheduled to release its latest forecast for production, inventories and demand at 8:30 a.m. EDT Monday.

The consensus of industry analysts is the agency will lower its production and yield outlook for the soybean crop below its August forecast. In recent weeks, several private firms have released crop estimates that were below the USDA's August forecast.

For September, the USDA will forecast the soybean harvest at 3.025 billion bushels, down 1% from its estimate a month ago, with the average yield at 41.0 bushels an acre, 0.9% below last month's estimate, according to the average prediction of 24 analysts surveyed by Dow Jones Newswires.

However, industry analysts have become increasingly comfortable with yield estimates near 40 bushels per acre, meaning unless yields drop below this in government forecasts, it may be hard to stage any significant rally from current levels.

The influence of external financial markets will continue to impact prices, with analysts concerned about soybean demand holding up in the face of a sluggish world economy.

U.S. soybean sales totaled 444,900 metric tons in the week ended Sept. 1, the USDA reported in its weekly sales report. Sales increases were noted to China at 192,200 tons. Analysts anticipated sales in a range of 300,000 to 650,000 tons.

"The sales report did not provide any surprises, but reflects U.S. soybean export demand continuing to sputter," said Roose.


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 

Name
e-Mail (required)
Location

Comment:

characters left


X-TENDED REACH GRAIN CARTS

YOUR BEST HARVEST IS NOW WITHIN REACH J&M introduces their patented line of X-tended Reach grain carts, featuring a frontfolding single ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form