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Soybean futures drop ahead of G20 Summit

An analyst says Monday’s dip in soybean prices could reflect doubt the U.S. and China will resolve trade differences during the G20 Summit later this week.

Elaine Kub tells Brownfield the bean market has been range-bound near $8.80 most of November.

“That’s not true (today), we’re seeing steep enough losses that it’s moving away from that (moving average) probably because of some guessing about those negotiations maybe not materializing.”

President Trump is expected to meet with Chinese President Xi (she) Saturday in Buenos Aires.

Kub says news that China is negotiating with Argentina to import soybean meal in 2019 indicates the Chinese are planning to work around the U.S.

“In that case, you don’t want to have any exposure to the soybean market, which could easily collapse down to $8.50 or lower.”

If there are positive developments from the G20 meeting, Kub says basis levels will likely improve through the end of the year.