The prospect of strong harvests in North and South America prompted soybean futures to lose value on Wednesday as the legume marked a second consecutive trade session of losses, according to Bloomberg.
The U.S. Department of Agriculture is slated to release an updated version of its forecasts this Friday, for which Bloomberg-polled economists project gains of 19 percent as compared to last year's harvest. Inventories of the legume are growing from the U.S. through Brazil.
"Weather conditions in South America are getting better," Senior Fund Manager Tetsu Emori with Astmax Asset Management Inc. in Tokyo told the news source on Wednesday. "There is some expectation that inventories for the U.S. and globally will be upgraded in the next USDA report, and this is pushing down the prices."
At 9:47 a.m. on Wednesday, soybean futures slid 0.35 percent, a 0.045-cent drop to $12.715 per bushel.
Reuters reports the legume has lost value during five of the past seven trade sessions. U.S. soybean production is poised to increase by 0.6 percent to amount to 3.279 billion bushels, according to analysts.
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.