Soybeans price highest in nearly two years

5/13/2016, 4:05 PM (Source: Superfund)

The cereals markets has seen some excitement last week. Investors were attracted primarily by the situation on the chart for soybeans. Quotations of this commodity have been growing rapidly for many weeks since mid-April. The rise is based on attempts for substantial downward correction (as opposed to prices of wheat and maize).

Last week, the price of soybean spread out on New Year's peaks (around $10.70-$10.80 per bushel), which was also the highest level of trading for almost two years. This is still a low price in comparison with that what was seen in the first half of 2014 ($14-$15 USD per bushel), but this year's traffic growth is impressive: since the beginning of the year the price of soybeans rose by almost a quarter.

In recent days, the dynamic growth was primarily due to information from the United States. The U.S. Department of Agriculture published on Tuesday a report on grain stocks in the U.S. and around the world. According to the Department, stocks of soybeans at the end of the season 2015/2016 will be at the level of 74.3 million tons, which represents a downward revision to the previous forecast for nearly 3 million tons. In addition, the forecast for inventories at the end of the season 2016/2017 was given for the first time in this report. Waiting for investors is a potentially negative surprise as the U.S. Department of Agriculture expects lowest inventory level in 3 years by size of 68.21 million tons.