Expectation of high availability pushes soybean price to 5-year low

Soybeans in a front-month contract are trading at below $9 per bushel this morning for the first time since July 2010. The changes made to the US Department of Agriculture forecasts last Wednesday offer little in the way of justification, as the figure for global consumption in 2014/15 was in fact raised while ending stocks were corrected downwards, mainly as a result of the US, says Commerzbank. 

Overall, however, the latest USDA report once again confirms the expectation of continued ample availability of soybeans in the coming season. Although US production in 2015/16 was not raised, the favourable weather at present is pressuring the price because it is ensuring sufficient moisture levels. By contrast, the fact that rain is hampering planting in some regions is seen as virtually no cause for concern at present