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Soybeans Reach New July High

July 9, 2013 at 18:30 by Andriy Moraru

Soybean spot price is rising for the second day in a row, peaking to the new maximum level since late June, today as traders remained focused on the same three factors: lack of supply, big planned exports and bad weather.

July soybean futures price managed to hit its new all-time high today despite the lack of any new significant fundamental events. The market participants are still reacting to yesterday’s news about 120,000 + 135,000 metric tons sale to be delivered during 2013–2014 period as reported by US Department of Agriculture. The first shipment is heading towards China, the larger one is intended for some “unknown buyer”. The news of export sales shatter supply/demand equilibrium considering the low level of US stockpiles caused by the last year’s adverse weather conditions.

Worse weather forecasts for the farm belt regions of the United States pose the main threat to the soybean growers. Analysts believe that it will be a major cause for continuation of bullish tendencies in near-time futures contracts. Soybeans remain a rather promising agricultural commodity among other grains (especially, compared to the rough rice).

Soybean spot price rose from $14.5954 to $14.665 per bushel as of 18:23 GMT today, peaking at $14.7854 per bushel during the trading session. July futures contract rose from $16.096 to $16.14 per bushel on CBoT, reaching the daily high at $16.30 per bushel — it broke the previous record set on September 25 last year.

If you have any questions and comments on the commodities today, use the form below to reply.

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