Soybeans were higher on export inspections being stronger than expected. This signals that Chinese demand remains strong, as well as squelches any rumors of cargoes switching to South America. Still, soybeans are hovering just above a four-month low pressured by investors trying to make heads-or-tails of the Brazilian crop.
On one hand, the market is feeling some pressure as Brazilian supplies are now priced at a substantial discount to U.S. soybeans, even more reason for buyers to make that switch away from U.S. cargoes. But on the other hand, you have shipping lineups continuing to build at Brazilian ports, and uncertainty in regard to Brazil's ability to get the beans out of the country. There is also talk that Argentine producers are still not selling soybeans.
Moral of the story: It remains tough to be bullish new-crop soybeans with South America expected to harvest yet another record soybean crop and world supplies moving to a new all-time high. Old-crop beans, however, may still have some upside potential and price targets north of $13 should still remain your goal.