Soybean Strategy - July 17, 2019
2018 crop: Recent soy price weakness is viewed corrective in nature and thought likely to precede a return toward better marketing opportunities. Target $9.25 basis September futures for next sales.
2019 crop: Patience on new-crop soybean marketings is warranted until futures return to the mid-$9 range. Establish incremental offers near $9.50.
Fundamentals: Soybeans continued to find support this week from the lower than expected plantings in the June acreage data. These numbers are being questioned, though, as planting is still taking place in some regions of the U.S. Soybeans took additional support this week from trade talks between the U.S. and China, which have been described as “progressive.” While no additional soybean sales to China took place, the fact that both sides are talking is promising. China continues to take delivery of already booked soybeans, which is also positive. A tight cash market was also supportive.
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