Last updated on October 18, 2023
The soybean futures in Chicago experienced a rise on Wednesday due to the decrease in the value of the U.S. dollar, which had reached an 11-month high. However, despite this increase, the prices of soybean futures remained close to their lowest levels since 2021. This can be attributed to the positive indications of a strong U.S. harvest and the fast-paced planting of crops in Brazil. These factors have contributed to an ample supply of soybeans, leading to a downward pressure on prices.
The decline in the value of the U.S. dollar has provided some relief for soybean futures, as a weaker dollar makes commodities like soybeans more affordable for buyers outside of the United States. However, the overall market sentiment remains bearish due to the expectation of a large crop in the United States and the rapid progress of planting in Brazil, which is one of the major soybean producers in the world. With this abundance of supply, prices are likely to remain under pressure in the near future.
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