By Andrew Johnson Jr.
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Soybean futures are expected to start Thursday’s day
session with a mixed undertone, as support from solid demand and uncertain crop
potential battle the bearish influence of outside markets.
Futures are garnering underpinning strength from the uncertainties
surrounding the 2010 planting season and a tight old crop supply scenario.
There is a long way to go before the 2010 U.S. crop is made, and with tight
projected 2009-10 ending stocks and solid underlying demand, traders are
unwilling to eliminate risk premium from prices, analysts said.
However, the markets remain in the negative clutches of a surging U.S.
dollar, with export competition from record South American harvests and a
strong seeding pace of 2010 U.S. soybeans presenting a bearish longer term view
of the market.
Concerns about Greece’s debt crisis are generating global economic jitters
while bolstering the dollar.
A firmer U.S. dollar is bearish commodity prices due to perceptions that it
decreases investors’ appetite for risk and makes U.S. grain cost more in world
markets.