The precipitous fall in the soybean market continued yesterday, falling for the 8th day in a row. It was down another 6 ¼ cents on Monday to $8.70 ½ on the January contract. Market analyst John Zanker with Risk Management Commodities in Lafayette, Indiana explains the tumble.
“Well the funds have thrown in the towel. I think we’ve just, collectively, gotten a little bit irritated I with the lack of any kind of a Chinese trade deal… lots of talk weekly that maybe we’re close, only to be followed by a statement from somebody that it’s not quite there. We’ve been going through this for 17 months, so I think the big money has thrown in the towel.”
The latest statement on China came Sunday as China’s Global Times newspaper said that Beijing’s top priority in a phase one trade deal would be removal of all existing tariffs on Chinese goods and that simply holding off on the next round of tariffs would not be sufficient.
President Trump briefly spoke with reporters on Monday on the South Lawn and reiterated that China wants to make a deal and he’s “happy where we are”.
Zanker is concerned about the Monday close and has some additional unwelcome news.
“There’s not a lot of technical support between here in the summer low of $8.29 ½.”
January soybeans have lost 66 ¼ cents since November 1.