By Barbara Kollmeyer
Investors glued to the drama on their financial screens right now might be overlooking an opportunity.
That’s according to analysts at Peak Trading Research who noted the “most seasonally ‘bullish’ window of the year for soybeans futures,” kicked off Thursday, which marks a seasonal low for that commodity based on data over the past 10 years.
“Soybean prices usually rise in Oct-Nov-Dec to ‘find the U.S. farmer’ and build a risk premium ahead of the South American production window. Brazilian farmers ramp up planting in mid-October. If there is a day of the year to buy Soybean futures, it’s today,” said Dave Whitcomb, founder of Peak Trading Research in a note to clients.
Here’s his chart:
Soybean futures /zigman2/quotes/210304009/delayed S00 -0.10% , on a continuous basis, have climbed around 5% so far this year, but is down from a peak seen this summer. Global commodities have been under pressure this year from Russia’s war in Ukraine, which has heightened concerns over global food supplies.
The U.S. soybean harvest is under way. Data from the U.S. Department of Agriculture showed 8% of the crop had been harvested as of Sunday.
Soybean futures got a lift earlier this month after the USDA cut its output and yield forecasts . Jake Hanley, managing director and senior portfolio strategist at Teucrium, told MarketWatch at the time that this will mark the third crop year in a row where “U.S. soybean use is expected to exceed production.”