Thursday, August 13, 2009

U.S. soybean futures fell 2 percent on Thursday on a bout of profit-taking and good weather in the United States that should ensure a record crop. Weather is bearish. There is some rain and cooler temperatures for next week and that's just what the bean crop needs. Markets have been on edge because the U.S. soybean and corn crops were planted late this year due to a cool, wet spring. Now, pollinating corn and pod-filling soybeans are soaking up warmer conditions across the Midwest, which is helping crops catch up on development. China, the world's largest soybean importer, was a noted buyer of U.S. soybeans and traders expect China to keep up a steady program of soy purchases from the United States because South American soybeans are more expensive.

Weather forecasts have warmer weather conditions that are improving crop development and then a cool off next week to normal, then below normal. That cooling process will be accompanied by scattered showers providing moisture for filling corn and beans.

~Chris Spurlock