Commodity ETF Alert November 2013 Issue
Commodity Outlook: Soybeans
From a bull’s perspective, things are starting to look a lot more interesting for soybeans. After a lackluster September and October, this essential grain market is finally on the upswing in recent trading.
What’s sending it higher?
Investors are factoring in the USDA’s most recent World Agriculture Supply and Demand Estimates (WASDE) data. In the widely watched report released November 8th, investors found the US soybean crop will be slightly smaller than previously thought.
As a matter of fact, the government agency expects soybean ending stocks of 170 million bushels for the 2013/14-crop year.
While that’s still a lofty number, it’s around 7 million bushels lower than market expectations going into the report. What’s more, the global soybean ending stocks estimate also came in below expectations at 2.58 billion bushels.
But that’s just the start of the bullish story…
Exports of the essential grain are also picking up. In fact, the USDA raised its soybean export forecast to 1.45 billion bushels from 1.37 billion bushels.
And listen to this…
The US is just 8 weeks into the soybean marketing year and 85% of the USDA’s total export estimate is already sold. Usually at this point of the year, a mere 50% of the USDA export estimate is accounted for.
What’s that mean?
Global demand for the US soybean crop is very strong. Some investors are actually questioning whether the US will have enough supply to meet global demand in early 2014.
Folks, it’s been a tough year for soybean bulls, but now’s the perfect time to get long this market.
How should we capitalize on higher soybean prices?
The Teucrium Soybean Fund (SOYB) will provide us direct exposure to the soybean market without the need for a futures account. Let’s not waste any time and add SOYB to your commodity ETF portfolio today!
Technically Speaking:
WHAT TO DO NOW:
Teucrium Soybean Fund (SOYB) is trading at $23.43
Buy SOYB up to $23.75 per share
Our profit target is $26.00 or more
***Editor’s Note*** SOYB is a relatively new and therefore thinly traded ETF. Do not purchase above the maximum buy up to price of $23.75.
Category: Commodity Trading
