Soybeans Extend Rally to 8-Month High as Demand Seen Recovering
This article by Aya Takada for Bloomberg may be of interest to subscribers. Here is a section:
Futures up 0.2% at $9.30 1/2/bu at 11:25am in Tokyo, rising a 3rd day, longest streak since Mar. 11
“A weakening dollar is boosting optimism demand for U.S. supplies from overseas buyers will keep expanding,” says Takaki Shigemoto, analyst at JSC, researcher in Tokyo
?NOTE: U.S. soybeans inspected for export jump +70.5% w/w to 386,768mt: USDA
Spring planting started last week and with favourable ground conditions the potential for a large crop, barring incident, is high. Against that background demand dominance for soybeans is likely to be a short to medium-term affair rather than a major bull market.
This chart of the contract table shows a reasonably balanced market for beans suggesting that the volatility of the Dollar may indeed with the deciding factor in how much appetite for exports there is.
Soybeans broke out of a six-month range last week and continues to improve on that performance. A clear downward dynamic would be required to question potential for additional upside.
By contrast corn has been subject to acute bouts of volatility and stabilised at the lower side of a developing 15-month base this week. It will need to sustain a move above 370¢ to break the progression of lower rally highs and signal a return to demand dominance beyond steadying.