Soybean Market Rallies as China Makes Large Purchase

The soybean market kicked off February with a bang as prices rallied north of $15/bushel. Export announcements fueled the frenzy as China ordered 132,000 metric tons of the legume for the 2022/2023 marketing year. Lower soybean crop estimates in Brazil amidst continued dryness also underpin domestic markets. New targets for total soybean production now rest between 128.5 and 130 million metric tons, down from 145 million metric tons outlined in the preplanting targets. Other commodity markets have rallied higher at the start of the week, influenced by global factors and robust demand.

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