Soybeans reached their highest level in over a month as analysts grow more concerned with slowing crop harvests in the Midwest region of the U.S. and Brazil.
According to Bloomberg, soybeans for November delivery rose 1.6 percent to $9.80 a bushel at 6:05 a.m. on the Chicago Board of Trade after earlier touching $9.825, the highest since Sept. 18. The U.S. soybean crop is expected to climb to a record-high 3.927 billion bushels, the USDA said in an Oct. 10 statement. These high expectations for the harvest have been a key contributing factor to why soybean prices are down 24 percent this year.
As of now, the USDA reported that farmers have only collected 55 percent of the total harvest, behind the 66 percent completed last year at this time. Heavy rains throughout the Midwest region slowed harvesting efforts down. Additionally, as Reuters added, the continuing dry weather in Brazil has led to delays in soybean planting for the year.
Reuters reported that Brazil's soy planting is only 10 percent complete for the 2014-2015 crop, the slowest planting effort for this point in the year since the 2008-09 season, said consultancy AgRural on Monday of this week.
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.