Welcome to “Teenage Beans”.
The mantra, popular with soybean traders and farmers, was reopened on the last trading day of 2020.
March futures contract
After reaching the daytime high of $ 13.21, it traded on the Chicago Board of Trade at $ 13.125 per bushel, up 12 cents. According to FactSet, soybeans have not traded above $ 13 since June 2014, based on trading on the most active contracts.
The rally is expected to rise by more than 12% in December and nearly 37% in 2020, with versatile legumes expected. Soybeans were traded in May 2019 as a US-China trade at a low of more than 10 years, below $ 8 for a bushel. The war has intensified.
Other produce, including soybeans and wheat
Impressive recovery in 2020, tight supply, volatile crop outlook in other parts of the world, and strong demand from China, which escaped the COVID-19 pandemic earlier this year It has gained support inside.
“This is a classic price distribution rally,” said Craig Turner, senior commodity broker at Daniels Trading, in an email statement.
“The world and US corn and soybean inventories are getting tighter. The weather in Argentina and southern Brazil is dry and hot now,” he said.
Concerns about production in South America have heightened concerns about tight supply. In December, the USDA lowered its forecast for US soybean inventory termination for the 2020/21 marketing year to a seven-year low of 175 million bushels. Inventories of corn are also tight at 1.7 billion bushels.
Meanwhile, Brazil’s final inventory is projected to rise 15.6% year-on-year to 716 million bushels, the second lowest in more than 20 years, said John Newton, Chief Economist at American Farm Bureau. federation, In the post..
Doug King, a veteran commodity trader who runs RCMA’s Merchant Commordity Fund, told MarketWatch earlier this month:
“Teenage Beans” with Soy Futures Highing for the First Time in Six and a Half Years – ShareandStocks.com
https://www.shareandstocks.com/beans-in-the-teens-as-soybean-futures-hit-6-1-2-year-high/ “Teenage Beans” with Soy Futures Highing for the First Time in Six and a Half Years – ShareandStocks.com