Inside: Grains & Raw Material
Soybeans have been rising for 8 sessions in a row
It is a bit surprising though. Soybeans have been rising in price for 8 sessions. This brings the July 2017 contract to the highest level in 3 months.
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Choose the subscription that suits youThis has initiated a shift from the focus on large South American harvests and lower press activity in China (which is already recovering) that depressed the market to news from the United States. The crops there appear to be in less good shape. In addition, according to the US Department of Agriculture, stocks are less large than expected.
Export plust
Furthermore, trade is going well. U.S. soybean export sales stood at 22 million tons as of June 59,36, up from 51,30 million tons a year ago. The Canadian soybean area will increase to 2,95 million hectares this year. Last year that was 2,21 million hectares and in 2015 it was 2,20 million hectares.
Soybeans on the Chicago stock exchange have now recorded green figures for 8 trading sessions in a row.
Crumbling prices
However, it must be taken into account that if weather conditions in the US improve, with more rain and higher temperatures, prices may decline. The Americans are also afraid that China will switch to South America to purchase soybeans.