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Date Added: 16/12/2011

Attention switching to South American weather

 

Soyabean prices are now attempting to rally having recently touched one year lows at around $11 per bushel on the Chicago markets.

 

Concerns are appearing over the developing South American soya crop with dry conditions and high temperatures prevalent in Argentina and Southern Brazil. Brazil has already exported record amounts of soya beans to China for this year so any uncertainty on the forthcoming crop is likely to increase prices. Commentators are also worried regarding low stocks of vegetable oils so after six months of decreasing prices there is some optimism for this trend to be reversed.

 

Of course the continuing problems with the Eurozone and the likelihood of another recession do not go well for big rises in prices but if these negative factors can be resolved there should be room for the fundamentals of supply and demand to create better opportunities ahead.

 

 

Regards,

 

Owen

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