Soybean prices have intensified their upward movement on the Chicago Board of Trade (CBOT) this Monday afternoon. The market is adjusting after the previous session’s losses, while responding to news and expectations for the upcoming week.
The U.S. Department of Agriculture (USDA) announced a new sale of 2024/25 soybeans to China, and traders are eagerly awaiting the USDA’s latest monthly supply and demand report, which will be released on Thursday, September 12. Speculations are rising about possible reductions in U.S. soybean productivity estimates.
Market analyst Eduardo Vanin from Agrinvest noted, “We have to understand the USDA in two phases. The first involves models showing how much was planted and how crops performed during the year, factoring in temperatures and rainfall up until August. From here on, the data will come from the field, and there’s usually significant variation in productivity figures between August and September.”
In addition to productivity concerns, traders are watching demand numbers and weather conditions. The upcoming report will provide insight into planting conditions for the 2024/25 season in Brazil and harvest progress in the U.S., where recent dry weather has raised concerns. Last week, U.S. crop ratings fell, adding further attention to the upcoming USDA data.
Traders are also eyeing the USDA’s weekly export sales report, which will be updated on Thursday. Additionally, soybean derivatives like oil and meal saw gains of over 1% during Monday’s session.
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