What Market Fundamentals Can Affect The Soybean Futures?
Together the Unites States and Brazil dominate global soybean production. The Chicago Board of Trade has separate futures contracts for US and Brazilian soybeans. In this article we will be focusing on the US soybean futures contract, and US soybean production. The soybeans market follows a fixed cycle of production. The soybean cycle goes from planting, to podding, to harvest. During these key stages of the crop’s development the soybeans futures prices are very sensitive to any potential supply disruption. 1. Soybean Planting Soybean field preparation and planting typically lasts from mid March through May. During March and May in the early stages of the planting effort soybean futures prices have tended to increase. 2. Soybean Podding Soybeans begin to set pods or reproduce in August. During the month of August soybeans futures have tended to increase. However, since even a poor pollination ensures some future soybean production the market doesn’t tend to increase as much during pod
