Inclement weather in the Midwest of the U.S. is likely to harm harvests as crops are left in vulnerable positions in strong growing region of the nation, according to Bloomberg.
Soybean futures ebbed and flowed on Monday amid concerns that rain and cold weather will damage the legume during the next several weeks. By the end of last month, 11 percent of the harvest of soybeans in the U.S. was done, according to data released by the U.S. Department of Agriculture.
"There is potential risk to the upside for soybean prices," states a report penned by analyst Chris Gadd with the Macquarie Group Ltd., according to Bloomberg. "The market will need to add a level of risk premium to reflect the uncertainty that remains for U.S. production and the delays to plantings being seen in Brazil."
At 9:32 a.m. on Monday, soybean futures fell 0.35 percent, a 0.045-cent loss to $12.905 per bushel.
Reuters reports soybean crops in India also were subject to strong rains, noting the top soybean-producing state of Madhya Pradesh has endured roughly four consecutive days of heavy rainfall.
Risk Disclosure
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.