Soybeans Soar Beyond $13, Join Broader Commodities Rebound

By Andrew Moran August 24, 2021, 4:14 pm • Posted in Commodities

Soybean futures are rallying on Tuesday, topping $13 again as the agricultural commodity attempts to restart another bull run. Soybean prices have been enduring a steep correction since hitting a peak of $16.67 this past spring. With demand still strong and a rebound in the broader commodities realm, can soybean retest $14?

November soybean futures advanced $0.3025, or 2.34%, to $13.23 per bushel at 15:02 GMT on Tuesday on the Chicago Board of Trade (CBoT). This is still treading at around a two-month low. Soybean is down 3.25% over the last week and 2.6% this month. Year-to-date, soybean is up 1%.

Investors turned bullish on the US Department of Agriculture (USDA) reporting that close to 658,000 tons of corn, wheat, and soybeans were inspected for export last week. This matches market forecasts. All eyes will be on the USDA’s report on Monday, which is expected to offer insight into crop conditions, and industry observers believe corn and soybean conditions will drop.

Rising supplies and demand concerns still affect agriculture prices. Heavy rainfall in the US Midwest alleviated the drought conditions that plagued crops throughout much of the summer. This is welcomed relief that could spur greater production levels, adding to tight inventory rates in the US.

A weaker greenback supported commodities. The US Dollar Index (DXY), which measures the greenback against a basket of currencies, shed 0.13% to 92.84, from an opening of 92.96. A lower buck is good for dollar-denominated commodities because it makes it cheaper for foreign investors to purchase.

Soybean investors are also monitoring US public policy. The Environmental Protection Agency (EPA) is anticipated to recommend the White House slash federal biofuel blending mandates for this year to below 2020 levels. This would affect the biofuels sector.

In other agricultural markets, September corn futures rose $0.06, or 1.12%, to $5.415 per bushel. September wheat futures slid $0.045, or 0.61%, to $7.29 a bushel. October coffee futures spiked $0.048, or 2.64%, to $1.8665 per pound.