By Joanna Levin
THE soya market collapsed yesterday (29 June) after rallying strongly over the past couple of weeks. The Chicago July futures contract lost 5% in a single day to close at 618.75¢/bushel, down from around 673¢/bushel at one point last week.
Weather forecasts are causing these wild swings during the planting season. Some private forecasters are looking for hot, dry weather in July and August, a so-called La Niña effect. However official weather predictions released late last week pointed to milder, more favorable growing conditions.
Such market volatility is also being blamed on concerns ahead of tomorrows acreage report from the US Department of Agriculture. Many analysts expect their predictions of oversupply to be confirmed, on top of high inventory levels in South America.