Soybean Planting Progress Surpasses Expectations

Planting Progress and Weather:

• Ahead of Schedule: Planting progress is ahead of the five-year average, with 68% of acres planted as of June 3rd.
• Weather Concerns: The weather, a significant wildcard, could profoundly impact the soybean market. While the Midwest has experienced favorable conditions in recent weeks, forecasts predict a drier pattern in the coming days. If not mitigated by timely rainfall, this could impact yield potential.

Demand and Supply:

• Domestic Demand Steady: Domestic Demand for soybean meal and oil remains relatively stable, supported by livestock feeding and biofuel production.
• Export Demand Lagging: Export demand, however, could be better due to competition from South American suppliers and a strong U.S. dollar. This could limit upward price movement.

Price Forecast:

• Range-Bound Trading: Given these uncertainties, soybean prices are expected to trade within a relatively narrow range this week. The July futures contract trades around $11.80 per bushel, with support likely found near $11.50 and resistance around $12.00.