Soybean prices fall
November soybean futures contracts trading on the Chicago Board of Trade slightly fell by 0.31%, and settled at $8.84 per bushel on September 17, 2015. Soybean futures prices have fallen 1.17% in the last two trading days. Soybean prices fell due to favorable weather conditions and commercial selling pressures. ETFs like the Teucrium Soybean Fund (SOYB) rose by 0.06% following stronger export sentiment on September 17, 2015.
Soybean export sales during the week ending on September 10, 2015, were 912 metric tons, according to the US Department of Agriculture’s (or USDA) export sales report released on September 17, 2015. During the week ending on September 10, 2015, China’s import of 458.5 metric tons is a sign of improving soybean demand. Promising exports should increase soybean prices, but prices actually declined. Although soybean exports started slow and grew weaker, exports have made soybean sellers anxious in the oversupplied market conditions. Due to commercial selling pressures, soybean prices dropped on September 17, 2015.
Soybean oil exports rose by 96% from last week and 48% from the average for the last four weeks ending September 10, 2015. Strengthening exports and increasing domestic buying at the same time might pull soybean prices down. Favorable weather conditions would help with the harvest and development of delayed soybean plantation and support prices.
Stocks and ETFs
Reduced soybean prices would weaken supply and thus benefit agriculture service businesses. This could affect Monsanto (MON), Martin Midstream Partners (MMLP), Syngenta (SYT), and Chemical & Mining Co. (SQM). These stocks declined along with the Power Shares DB Commodity Index Tracking Fund (DBC) on September 17, 2015.