As prices head for the biggest quarterly gain in more than two years, an expanding global glut is raising concern that the rally is coming to an end. Traders surveyed by Bloomberg News are the most bearish in nine years, with three-quarters of respondents expecting a decline next week.
Soybean futures have rebounded about 15 percent since reaching a four-year low in October as demand grew for U.S. exports. Now, Brazil’s government is forecasting domestic farmers will gather the biggest crop ever early next year, easing supply tightness. Rising world production will push global inventories to an all-time high, the U.S. Department of Agriculture said this week.
Soybean’s Best Rally Since 2012 Seen Over on Record Crop
Soybean futures have rebounded about 15 percent since reaching a four-year low in October as demand grew for U.S. exports. Now, Brazil’s government is forecasting domestic farmers will gather the biggest crop ever early next year, easing supply tightness. Rising world production will push global inventories to an all-time high, the U.S. Department of Agriculture said this week.
Soybean’s Best Rally Since 2012 Seen Over on Record Crop