US soybean futures in Chicago commodity market spiked to a fresh four-year trough after having been surged for six straight sessions in a row on Friday as a clamp-down in US supplies largely due to a mass-scale pandemic associated supply chain disruption coupled with concerns over droughts in key South American harvesting areas had been hitting stockpiles much harder-than-anticipated, leading to a giant leapfrog in US soybean futures’ prices.
On top of that, wheat and corn futures’ prices echoed Soybean futures and wrapped up the day just a notch shy of three-month highs reached earlier in the session, in part due to a weekend profit-taking sell-off wave.
US soybean futures post third straight weekly percentage gain
In point of fact, while agricultural goods’ prices in the United States had been picking up sharply as Consumer Prices Index data had revealed last week, both US corn and soybean futures had reported their third straight weekly percentage gain.
Besides, analysts were blaming a supply chain disruption in the United States due to frets over a renewed lockdown measure over the recent leg of rally in US soybean futures’ prices, while a strong demand amid a relatively drier planting and harvesting season in Brazilian and Argentine grain belts this year had added to further upswing in US soybean, corn and wheat futures’ prices.
Citing statistics, on Friday’s Chicago Commodity market closure, US soybean futures scheduled to be expired on January rose 5.25 cents to $11.8275 per bushel after hitting an intra-session high of $11.9675 per bushel, its highest level since June 13, 2016, while December corn futures edged higher to wrap up the day at $4.2350 per bushel.
Meanwhile, referring to a sharp decline in US stockpiles which appeared to have goaded the recent leg of rallies in US soybean futures’ prices, a Rabobank Commodity analyst, Michael Magdovitz said on Friday, “There is a scarcity concern in the market this year.
We’re getting into the period when there is a higher moisture requirement for the Brazilian crop and when there is not so much U.S. crop left to be sold”.