Soybeans trading in a sideways band.
Looking at the November 2016 soybean chart below, it looks as if it is range bound with the high seen on December 7th at $9.265 and the low on December 29th at $8.80.
Weather is looking bearish with the northern part of Brazil getting rain and sufficient soil moisture throughout much of the United States, the fundamentals are looking very negative for 2016. South American harvest should occur right before or during U. S. planting depending on the location and if a record harvest is seen in Brazil there is little reason for the market to rally. If we add Argentina’s stored soybeans along with producer storage in the United States and weak global demand, it will take lower prices to spark demand usage.
The implications for soybean marketings in 2016 are negative. Without a weather scare or increased global demand it will be difficult for November soybeans to move above the $9.26 level. The same goes for support, if the market were to move below the $8.80 level it leaves the market open to go to $8.43 and then $7.78
Now is when producers should be discussing 2016 strategies with their respective broker. If you have questions and would like to discuss 2016 marketing strategies, call Bob or Laura (1-800-832-1488). If you have questions, we welcome emails to [email protected] or [email protected].
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