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.
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