FX.co ★ Soybean review for June 6, 2001

Futures on soybean decreased on Monday amid worsened weather conditions in the USA and expectations of substantial progress in seeding works at the weekend.
By the end of CBOT trades July futures on soybean closed with a loss of 31 ¼ cent (2.2%) of 13.83 US dollars per bushel.
Better weather conditions had negative impact on the futures dynamics at the beginning of the week as traders have been expecting that farmers have managed to plant much soy at the weekend after systematic suspenses due to heavy rains and cold weather.
Traders have been carefully monitoring seeding amid concerns over reducing reserves. This year farmers need to have good harvest in order to prevent supply crisis on the market.
Last week futures on soybean were supported owing to concerns over possible shifting of farmers’ preferences towards corn amid better weather conditions in Mid West. However, farmers are told to have left enough acres for soy.
According to the data provided by the US meteorological agencies, weather conditions will be rather beneficial in eastern and southern regions of Mid East which will have positive effects on seeding works.
On the other hand, declining oil futures quotations had negative impact on price dynamics on Monday since oil futures pressed prices for biodiesel fuel made of soybean oil down.
The USD growth appeared to be unfavourable for soybean futures dynamics as strengthening American currency renders futures more expensive for holders of other currencies.