Grain Trade: Soybeans Breakout Points To Higher Prices
(This post was originally published on SeeItMarket)
Unlike an Apple’s quarterly revenue miss or a hedge fund activist tussle with a struggling multi-national corporation, business coverage on one of the world’s most important crops, soybeans, tends to be neglected in favor of a tech IPO or predictions of the next Fed Funds rate hike. Developments in the agricultural markets in recent weeks are putting the spotlight on commodities like soybeans. Moreover, a soybeans breakout appears to be in action.
Flooding and heavy rains in Argentina this spring will mean lower outputs from South America this year. Another fundamental factor that could take place this month is possibility that the USDA increases their export projections due to strong foreign demand across the globe.
Finally, from a currency standpoint, a weakening U.S. dollar (down nearly 5% year to date) is a tailwind not just for … Read More »