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Soybean futures soar on trade resolution hopes

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November 2nd, 2018

After U.S. President Donald Trump said trade talks between the United States and China, normally the top soybean importer, were “moving along nicely,” soybean futures rallied more than 3% Thursday on hopes for a resumption of exports. Technical buying and spillover support from the soybean rally boosted corn futures. Strong weekly export sales data gave a boost to wheat futures, as did a weaker U.S. dollar. November soybeans advanced 30c to close at $8.69 a bu. December soybean meal rose $7, closing at $313.40 a ton. December soybean oil added 0.30c, closing at 28.32c a lb. Chicago December wheat advanced 7½c to close at $5.08 a bu. Kansas City December wheat added 8c to close at $5.01¼ a bu, and Minneapolis December wheat was up 7½c to close at $5.76½ a bu. December corn added 3½c to settle at $3.66¾ a bu.
    U.S. equity markets extended their rallies Thursday, helping investors regain some of their losses from a volatile October. The Dow Jones Industrial Average packed on 264.98 points to close at 25,380.74. The Standard & Poor’s 500 Index advanced 28.63 points to close at 2,740.37. The Nasdaq Composite Index added 128.16 points to close at 7,434.06.
    Surging U.S. oil production and rising inventories sparked concerns of a return to a global oil surplus Thursday, causing U.S. crude oil prices to drop to their lowest level in nearly seven months. The December contract fell 87c to close at $65.31 per barrel.
    The U.S. dollar weakened Thursday.
    U.S. gold futures strengthened Thursday, the December contract adding $23.60 to close at $1,238.60 per oz.

 - Food Business News.



See Also: Corn Futures, Soybean Futures, Wheat Futures
Soybean futures, Corn, Wheat Tumble on Indications of Reduced Demand From Japan
By Jeff Wilson and Whitney McFerron - Mar 15, 2011

Soybean futures and corn tumbled the maximum allowed on the Chicago Board of Trade and wheat plunged the most in seven months on concern that the earthquake and nuclear crisis in Japan will reduce raw-material demand.

Equities in Japan had the biggest two-day drop since the 1987 crash as the risk of radiation leaks north of Tokyo escalated. U.S. Treasuries surged. Japan is the world’s leading buyer of corn, the third-largest importer of soybeans and the fifth-biggest purchaser of wheat.

“Increasing levels of radiation have people dumping positions in stocks and commodities and piling assets into cash,” said Alan Brugler, the president of Brugler Marketing & Management LLC in Omaha, Nebraska. “There’s increased risk aversion until the situation stabilizes in Japan.”

Corn futures for May delivery fell by the CBOT limit of 30 cents, or 4.5 percent, to close at $6.36 a bushel at 1:15 p.m., the lowest since Jan. 20.

Soybean futures for May delivery declined the 70-cent maximum, or 5.2 percent, to close at $12.70 a bushel, the lowest since Dec. 13.

Wheat futures for May delivery dropped 53 cents, or 7.4 percent, to close at $6.6775 a bushel in Chicago, the biggest decline since Aug. 6.

Oats fell the 20-cent maximum to a six-month low, while rice and soybean-oil futures also fell by the exchange limits in Chicago.

Shipments into Kashima and other ports on Japan’s east coast were stopped because of power outages after the 9.0- magnitude earthquake and tsunami, Zen-Noh, Japan’s largest corn buyer, said yesterday. Japan said today it plans to buy 32,381 metric tons of wheat in a tender on March 17, 76 percent less than it purchased last week.

Screen Imports

Asian countries moved to screen food imports from Japan following explosions at the Fukushima nuclear plant that raised radiation levels at the complex to harmful levels.

South Korea, Indonesia, Thailand, Malaysia, Singapore and the Philippines took steps to check fruit, vegetables, meat and seafood from Japan for nuclear material.

“It’s a fear-driven trade” focused on Japan, said Frank Cholly Sr., a senior strategist at Lind-Waldock, a broker in Chicago. “Demand is going to slow down, because even though they need to eat, they have more urgent things. They’ve got to stop the radiation leak, and they’ve got to find any survivors.”

Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government figures show. Wheat is the fourth-largest, behind hay, at $13 billion.

 - Jeff Wilson and Whitney McFerron in Chicago at Bloomberg.