Soybeans in Chicago rose
the soybean Market reacted to the activity of Asian oil markets and in oil prices to the level of 49,32 $/bbl increase of quotations on 2% to level 375,98 $/ton. Despite forecasts of analysts about the decline in world prices to the level 330-34 $/tonne amid rising global balances and consumption reduction, as well as the strengthening of the dollar relative to other world currencies. This significantly increased export demand for U.S. soybeans.
the November USDA forecast for soybeans was poor. Assessment of world reserves at the end of the 2016/17 season MG of 5.9% exceeded analysts ' expectations and amounted to 81,53 million. The same trend was observed in the three previous balances, USDA.
the Main competitor of the United States on the soybean market is Brazil. During November, the dollar index rose 3.5% and the Brazilian real against the dollar decreased by 7%. It is likely that in December the United States will raise interest rates and this will lead to a further strengthening of the dollar. Due to which importers will be more interested in Brazilian soybeans than the us.
However, despite the pessimistic prospects for U.S. exports, the funds continue to increase long positions in soybeans for the past six consecutive weeks. The overall market liquidity drops. So it will be very interesting to see what will unfold soybean market in the near future, with the speculators who will try to heat up the market and the actual sales that may fall due to too high price.