Soybean seems to increasingly attracting investors for the profitable investment. Soybean is providing good enough ups and downs in the prices which are actually drawing the attention of many investors around the globe. Soybean could not get a wet enough land to grow in Argentina which acted as a catalyst to the price rise of Soybean. The concerns for the rising prices of the commodity were also catalyzed by the growing demand in China. Though, corn and wheat usually followed the price trend of soybean only, this time the trend got reversed and they evidenced a falling trend rather than a rising trend. China is the largest buyer of the commodity and according to the United States Department of Agriculture; recently the US exporters have sold 120,000 metric tons of soybeans.

Experts believe that the traders can be very optimistic about the rise in the soybean sales especially after looking into the purchase resumption by China. Though Argentina could be competent enough to as the prospective exporter, insufficient rain in the region could not make that happen. The instance that the soybean price is raising can be justified when we find that the delivery intention for the commodity has rose by almost 3 percent at Chicago Board of Trade. This jump in the intention happens to be the biggest since 14^th of January. On the contrary, Argentinian farmers are holding back their sales, basically for two reasons: lack of production and the peso depreciation against the dollar in the international market.

As mentioned earlier, though the main reasons for the price rise of soybean are the increasing demands from China and the production threat to the commodity in the Argentinean region due to the adverse weather, there is one more reason too which cannot be overlooked. The economic trend is usually followed by the measures of demand and supply intentions but in case of soybean, the anticipation of higher prices for the commodity in near future, the holdings have increased which has led to a fake shortage of the commodity in the market. Expert from the Commonwealth Bank of Australia also supports the fact that the soybean traders can have a good time if only it gets added to their investment portfolio.

Speculators would definitely hope that the weather in Argentina does not go good soon but then even if it does so, there are always chances to earn the other way round, going with the bearish trend.

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.