The following is quoted verbatim from the website of the Chicago Mercantile Exchange following yesterday's close and soybean price weakness. The CME is the exchange that trades most soybean futures in the United States. What is notable here is that the CME acknowledges that the price of soybeans is supported somewhat by the price of crude oil. Interesting!
Soybeans, meal and oil all opened higher and surged to sharply higher levels during mid-session on a combination of buying by funds, locals and commission houses. Volume was fairly heavy on the early strength and sharply higher crude oil was also cited as a major supportive factor. However, all three markets fell sharply late in the day led by oil where floor traders indicated that large scale commission house selling in the May contract appeared to precipitate the break. This generated liquidation selling across the soybean complex.
