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//Market ReportRockets Away
Since the writing of the comments in January the front-month bean contract has rallied nearly a dollar. As we mentioned in last month’s comments the tides seemed to have turned in the month of January as we saw China finally beginning to full fill some of their purchase agreements and shipments of beans begin to occur. Additionally, we saw the January supply/demand report from the USDA. As those tides turned we also so more conversations between U.S. President Trump and
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//Market ReportTurning of the Tide?
Following the price decline in December, the soybean market seemed to find some footing through the flip of the calendar. New reports that China was beginning to auction off state reserves – this would make room for China’s new soybean purchases from the U.S. and in the market’s eyes ‘new demand.’ Using the quotations is intentional because as we know, the USDA had already plugged in China demand into the balance sheet. And with their nonexistent purchases in the first half of the marketing year
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//Market ReportBuy the Rumour, Sell the Fact
Last month’s comments started out talking about a significant gap on the January bean chart that occurred at the end of October and set the market up for a rally throughout the month of November. That rally was largely due to the belief that China would be buying ‘significant’ amounts of U.S. soybeans. This belief was fueled by numerous meetings and ‘anno
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//Up, Down, Up and Away
Gap and Go. For the last two months I have written largely about a soybean market that has worked really hard to go ‘nowhere’. Soon after writing the commentary for October the market finally decided to go ‘somewhere’. That somewhere has largely been higher. The market today is nearly 85 cents off of its lows from late October, but it hasn’t been a direct path higher, having seen a few days of setbacks in between. At the end of October details of a reported trade deal between the U.S. and China
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//Market ReportThe Price Puzzle
The USDA June WASDE report came and went, with no changes. Old crop and new crop demand were left the same – with the USDA likely waiting to make any further changes following the coveted Stocks & Acres report at the end of the month. As it sits now, planted acres are estimated at 83.5 million vs. 87.1 million last marketing year.
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//Market ReportHands and Feed Inside the Ride at all Times
The excitement of the soybean market in May was led by a 90-day pause on U.S./China tariffs. Following escalations last month, both countries met in Geneva to begin negotiations. To the market’s surprise, that meeting resulted in a pause on tariffs – with both nations agreeing to lower their tariffs for 90-days while negotiations continued.
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