Forecasts of Very Hot Weather are Driving Soybean Prices
July 6, 2020
Soybean prices are sharply higher due to forecasts of unseasonably hot weather. According to the CPC: “There will also be heavy showers over the Southeast this week as a weather systems stalls, although still very warm & humid with highs of mid-80s to lower 90s. 8-15 Day Outlook (July 12-19): Very strong high pressure will rule much of the US with highs of 90s and 100s for strong demand. The cooler exception will be across the Northwest as weather systems bring showers and highs of 70s-80s.” Soybean futures are close to a 4-month high as traders are trying to decide how much weather premium should be added to soybean prices.
8-15 Day Outlook: Very Hot Upper Ridge Rules Most of US Except NW US
Image from NatGasWeather.com
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The Fundamental Analytics Team
The information provided here is for general informational purposes only and should not be considered individualized investment advice. All expressions of opinion are subject to change without notice in reaction to shifting market conditions.