October 7, 2008


Pressurized US soy prices likely to trade down



November soy prices closed lower on a weaker note, taking cues from the global market.


Harvesting pressure and record high production estimates of soy also added to the bearish market sentiment.


A sharp fall in crude also helped to drive the market lower on bio-diesel concern.


CBOT soy futures breached 11 month's low on selling pressure on concerns of US financial crisis and lower demand from China on autumn festival holiday.


The USDA pegged US soy stock as on Sep 1st at 205 million bushels, which is much higher than recent USDA forecast of 140 million bushels.


US soy stock estimate surged only because the USDA revised their 2007 crop production forecast to 2.676 billion bushels, which was 91 million bushel above the previous estimate.


Soy prices are expected to trade down on account of weak sentiments in global market and higher production estimates of soy. Prices are expected to trade lower on account of higher sowing acreage of soy amidst favorable weather in major growing areas and higher production estimates this year as compared to previous year.

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