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Weak Chinese buying and South American weather keep soybean prices steady heading into the new year

The vice president of farm services with NAU Country Insurance says the soybean market is entering the new year waiting for news.

Rich Morrison tells Brownfield, “The managed funds really loaded up on that announcement back in late fall, and now you’ve seen them start to sell out some of their length almost on a regular basis here over the last month or so.”  He says, “It’s taking the market right back down to where we started almost.”

He says soybean prices at this time of year are closely tied to South American growing conditions.

“At this point, the weather looks pretty good in Brazil.”  He says, “I think there’s a little concern about some heat and dryness in southern Argentina, but for the most part, at the moment, things look pretty good.”

Morrison says that unless Chinese purchases significantly increase, or new trade deals are announced…

“It’s just difficult to think that the bean market can get up and rally much,” he says.

He advises farmers to sell the bumps as they arise and remain focused on their long-term marketing plan as they head into the new year.

AUDIO: Rich Morrison – NAU Country Insurance