Soy price balances at $ 10 per bushel

8/19/2016, 3:22 PM (Source: Superfund)

After downward market movement in soybeans prices that lasted for month and a half, quotations of this commodity bounced up in August and managed to knock back above $10 per bushel.

The price of soybeans was still moving upwards on Friday, but close to the border, and the fundamental information coming from the market indicate that further increases in the demand side may not have the strength.

The main factor supporting sellers in the soybean market is expected record harvest of this commodity in the United States of America. The U.S. Department of Agriculture announced recently that they expect the harvest of 4.06 billion bushels, with an average yield of 48.9 bushels per acre. The Department also estimated that stocks of soybeans are expected to reach 330 million bushels at the end of next season, which would mean an upward correction of 40 million bushels compared to the July forecast.

The calculations of the institution were higher than market expectations. Anyway, the above data were seen as good mainly due to favourable conditions for growing soybeans, which prevailed in the United States this summer. Markets saw a lot of good quality soy - and, of course, this negatively affects prices.

Recent data on the export presented by the Department of Agriculture, as expected, showed a considerable export of soybeans from the United States, adding weight to the demand side. The large demand is, in great part, generated primarily by China.