Soybean Review

Soybean futures prices on the Chicago Board of Trade fell sharply Thursday, succumbing to broad-based speculative long liquidation in commodities.
Continued liquidation by funds coupled with commercial hedging served as the
catalyst for the session's heavy losses, said Joe Victor, analyst with
Allendale Inc.
Fears that the slowdown in U.S. and global economic growth will hurt demand
for commodities sent bearish ripples through the market.
The most-active November futures dropped below the psychological $10.00 per
bushel level for the first time in 11 months on an intra-day basis. The losses weren't fundamentally related, speculative longs were just uncomfortable holding at risk positions in the face of weakness in the financial sector, said Shawn McCambridge, senior grains analyst with Prudential Bache.
Meanwhile, favorable near-term weather for late maturing crops and harvest operations added weakness, with commercial hedging reported heading into the fall harvest.
Looking ahead, soybeans have good solid economic value at current levels, based on its demand structure, Victor said. Once fund liquidation runs its course, the market will have set its seasonal bottom and upside movement will be geared toward demand, he added.
The DTN Meteorlogix forecast calls for cool to very cool weather in the northern Midwest. Some frost is likely, along with possible light freezing conditions. This chilly temperature event will likely not cause significant crop damage.
Following the brief round of colder weather in the Midwest, a return to mild temperatures is in store for the corn and soybean areas during the weekend.
Temperatures will be generally above normal, which will return crop weather to a favorable status for late-season progress and harvest, Meteorlogix reports.
In pit trades, speculative fund selling was estimated at 4,000 lots