By Andrew Johnson Jr.
Of DOW JONES NEWSWIRES
CHICAGO (Dow Jones)–Soybean futures are poised for a firmer start to
Wednesday’s day session, underpinned by spillover strength from outside markets
and supportive underlying fundamentals.
Overnight, Chicago Board of Trade August soybeans were 4 cents higher at
$10.15 3/4 and November soybeans were 5 1/4 cents higher at $9.78 1/4. Analysts
expect soybeans to start 4 cents to 6 cents higher.
Futures are expected to follow through on Tuesday’s late session bounce,
feeding off borrowed momentum from outside macro markets, with firmer crude oil
and metal futures attracting buyers.
The market is garnering support from underlying fundamental strength as
well, with tight spot cash supplies, good demand and the uncertainty of weather
as soybean crops head into there critical pod-filling stage of development
buoying prices, a CBOT floor analyst said.
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.
However, the absence of a near-term weather threat and sentiment that the
market has adequately priced-in crop concerns is seen limiting advances,
keeping some participants on the sidelines.
The DTN Meteorlogix weather forecast said it does not appear that the
southern U.S. ridge will be strong enough to have a significant impact on the
Midwest weather during the next week to 10 days. It does promote above normal
temperatures at times but there will also be scattered thundershowers in the
region as well, especially early in the week, Meteorlogix added in the
forecast.