By Andrew Johnson Jr.
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Soybean futures are expected to start Wednesday’s day
session on firm footing, buoyed by supportive technicals and weather
uncertainties for the developing U.S. crop.
Overnight, Chicago Board of Trade July soybeans were 1 1/2 cents lower at
$10.29, August soybeans were 3 1/2 cents higher at $9.98 1/2 and November
soybeans were 4 3/4 cents higher at $9.59 1/4. Analysts expect soybeans to
start 2 cents to 4 cents higher.
A quiet news front is keeping attention on technical charts, with a bullish
posture taking hold in the market. “Soybeans will try for more gains this
morning, after rejecting a bearish reversal from Monday,” said Bryce Knorr in a
Farm Futures market note. November futures continue to hold its chart breakout
from last week, though a close above recent highs would consolidate the move,
he added in the note.
The uncertainties of longer range weather, as soybeans prepare to move into
their critical August growing period, is keeping a bid under the market. August
is a critical time for soybeans because that’s when the plant sets pods and the
beans within them grow, ultimately determining the yield.
Mixed signals from outside markets are not aiding price discovery, with
traders taking a cautious approach until the summer growing season weather
plays out.