Worldwide harvests are projected to be smaller than forecast, which places the onus for demand on supplies produced by the U.S. production of the commodity from Brazil, the second-biggest grower of soybeans, is likely to be around 66 million metric tons, rather than the 68.5 million metric ton originally forecast, according to the U.S. Department of Agriculture.
"There's still some potential to the upside" for soybean futures, commodity fund manager Tetsu Emori with Astmax told Bloomberg. "We're still seeing some downgrade in production in South America."
At 2:15 p.m. on Thursday, soybean futures increased 1.02 percent, a 0.145 cent gain to $14.34 per bushel.
The South American nation trails only the U.S. for production of the commodity. Markets are closed in the U.S. for observation of Good Friday.
The Cattle Network reports Thursday's bullishness by soybean futures continued the strong performance from the day prior.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.