Soybean Update

Jeff James

Soybean futures carved out a bottom in the month of April while trading in a relatively tight trading range of around 20 cents. The harvest contracts traded up to their highs in the 9.60s twice while finding support around 9.48. Hedge funds have near record short bets on in place on ag commodities in with more than 400,000 contracts in total. Slow planting progress has been the discussion more recently to the end of the month with major parts of the Midwest receiving very large accumulations of rain and even snow. Today it is more of a delay on corn plantings which are at some point could see them switch into soybean acres if the delays continue.

The Canadian dollar saw a difficult month with oil prices slipping and with President Trump taking aim at the North American Free Trade Agreement. It was down to 14 month lows near the end of the month losing more than 200 points in the month. With the minor fluctuations in futures and this beneficial drop in currency, cash soybeans find themselves nearly 30 cents higher for harvest. Our markets are in a full weather trade as well as this added Trump volatility. We have seen very good success with target orders being filled on these volatile days. They are a great tool to have someone watching the markets for you while you are in the field this spring.