Futures for soybeans and soybean oil lifted off last week just like the SpaceX rocket that took flight Friday in Cape Canaveral. Soybeans rallied to $15.39 per bushel, up $1.06 from Monday to Friday’s close, and have increased $1.55 since Apr. 12. Equally as impressive, soybean oil has rallied from 52 cents per pound on Apr. 12 to 62.71 cents as of Friday’s close. Weather fears, soybean supply concerns, and additional fund activity has helped fuel this recent two-week rally.
Weather in the U.S. has not been very cooperative over the last ten days, and what was once high confidence for an “early planting” now looks to be on par at best. Albeit still early, soybean planting was 3 percent complete as of last Monday’s report. Little to any progress would have been made last week as very cold temperatures gripped the Midwest and penetrated as far south as Texas. South American weather has turned dry, and the Brazilian safrinha corn crop may be in danger of some yield degradation, which is offering support to soybeans as well.