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Soybean Futures Snap Seven-Session Win Streak

September 16, 2016 at 17:21 by Andrew Moran

Soybean prices are heading lower after a new report raised monthly estimates on US soybean production and ending stocks for the 2016 and 2017 crop year.

November soybean futures tumbled 1.70% to $9.64 per bushel at 16:53 GMT on Thursday. Soybean futures posted gains for seven consecutive trading sessions before snapping the win streak.

The US Department of Agriculture projected in its monthly report on Thursday that soybean production will hit a record 4.201 billion bushels. This is up 141 million bushels from its previous estimate in August. The USDA also forecast that stocks will end the year at 365 million bushels, which is up 35 million from last month’s estimate.

Investors are hoping that strong global demand could limit the report’s impact on prices.

The report further found that private exporters had sold 110,000 tonnes of US soybeans to various destinations worldwide. Also, export sales of US soybeans in the week ending September 8 reached more than one million tonnes. These numbers meet expectations from an array of industry trade groups.

According to figures from the National Oilseed Processors Association (NOPA), US soy processors crushed 2.6% fewer soybeans in August compared to the same time a year ago. The decrease in plants in the southwest are being attributed to the pace falling under market expectations.

Soybean prices have been bullish all year long. Soybean has climbed between 2% and 9% per month, except in July, when it crumbled more than 7%.

Meanwhile, corn futures were also affected by the USDA report. November corn futures slipped 4% by the end of the Thursday trading session. Corn prices have fallen 18% over the past month. December wheat futures dropped 0.5% to $3.97 per half a bushel.

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