Analysts have been trimming South American Soybean crop production estimates over the last several weeks, which has led to a bullish position for Soybeans and the Soybean Meal markets. Last week marked 4 weeks in a row of higher prices on Soybeans.
Chinese demand for U.S. Soybean exports will be worth watching over the next several weeks. If the Chinese demand develops, then we could see this bullish trend on Soybeans and Meal continue.
Oil demand has been on a steady rebound as world travel has been increasing post pandemic. Oil demand as well as tensions between Russia and Ukraine have pushed oil prices near their 7-year high.
Russia is the world’s third largest oil producer. If tensions boil over to a full-fledged conflict, I’d expect oil and energy prices to increase significantly.
Actionable insights: Keep track of Chinese demand for U.S. Soybeans -- could be the next market mover. Follow news on Russia-Ukraine conflict -- potential big effect on energy prices and consequently almost all ingredients.