CBOT soy outlook: Seen lower on profit taking pressure

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 drift lower Wednesday, stabilizing after recent advances on profit taking from investors.

CBOT soybeans are called to open down 3 cents to 5 cents.

In overnight trading, Chicago Board of Trade new crop November futures were down 4 1/2 cents at $14.52 1/2 a bushel.

Prices weakened overnight amid signs the fundamental rally is tiring, particularly without aid from external financial markets, according to a market note from brokerage and advisory firm INTLFCStone.

Soybeans have rallied over 12% in value in the past three weeks on declining yield prospects after facing dry August weather conditions during the crops' reproductive stage.

The recent influx of fresh investment capital into the market has priced in lower yield and production outlooks, and without new supportive news, traders are encouraged to take some profits off the table.

Industry analysts are concerned about slowing demand, with ideas China is buying from South America longer than usual triggering some selling overnight, according to a market note from Farm Futures, an agricultural publication.

Investors are also cautious of taking on added risk ahead of a long holiday weekend, yet traders remain nervous about soybean output after the U.S. Department of Agriculture on Aug. 11 slashed its estimate for yields and private forecasters consistently lower yield prospects.

Industry analysts are concerned about any drop in crop potential, particularly with new crop soybean end of year supplies already forecast at precariously tight levels by government forecasters.

The long-term outlook for the soybean markets is supportive, as shrinking yield prospects in the U.S. bode well for soybean prices, according to analysts at Barclays Capital.

Nevertheless, traders are mindful that soybean yields still have room to improve, as late season rains will help soybean pod filling, analysts say. Otherwise, traders will await the next round of private crop estimates leading to the next crop forecast from federal forecasters Sept. 12.

INTLFCStone will release yield and production forecasts Thursday.

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

Pacesetter Grain Hopper

The Pacesetter Gain Hopper features original and innovative ideas like the patented RollerTrap™, the industry’s easiest to open and maintain trap ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form