U.S. weather uncertainty will continue to be a source of support for downtrodden soybean futures, regardless of rising South American production prospects, according to a U.S. analyst.
“There appears to be a reluctance in getting short before planting and the growing season,” said Sean Lusk of Walsh Trading in Chicago.
Chicago soybean futures actually fell to their lowest level of the past year earlier this week, but bounced off those lows as uncertainty about new-crop production and chart-based buying offered support. As the chart below shows, the May soybean contract fell heavily throughout March, dropping over US$1/bu before showing some mettle on Wednesday and early Thursday. Read more