September 18, 2009
Weather concerns support soy market in near term
Soy prices will be supported by a weather risk premium in the coming weeks, although a rebound in production from South America in 2010 is bearish for the market's longer-term outlook, said Kona Haque, analyst at Macquarie bank Thursday (September 17).
The US, the world's largest producer of soy, is expected to produce a record crop in 2009-10, although a frost before early October would have "a detrimental effect" on the crop, Haque said.
"A high degree of uncertainty concerning the US crop size will remain in the market for several weeks to come," Haque said.
However, the bank's view becomes more bearish in 2010 when Argentina and Brazil's production is expected to rise on the year.
The Chicago Board of Trade's most-active soy futures Wednesday ended down 9.5 cents at US$9.50 and a half a bushel.
