“Soybeans: Ready to Take Off?

In the ever-changing world of commodities trading, soybeans could be the next parabolic runner. Parabolic runs are a phenomenon where a commodity’s price rapidly rises, and then just as quickly falls back down again. Soybeans are an important and versatile source of protein and contain a number of invaluable nutrients. This has resulted in high demand from countries that want to diversify their diets as population growth continues. In addition, declining stocks of food staples like corn in Brazil have increased the value of alternative sources like soy. The world’s biggest producers, Brazil and the United States, are both facing strong demand. The rise in soybean prices has been dramatic, with a 32% increase in the last 12 months alone. This could be the ideal time to capitalise on a parabolic run. The situation will likely only improve as countries around the world continue to search for nutritious food sources. A number of factors are driving the price of soybeans. Most notably, Brazil’s deteriorating weather conditions have damaged its ability to produce soya beans. This has led to a significant shortfall of domestic supply which in turn has pushed prices higher. Meanwhile, strong demand from countries such as India is creating a perfect storm of conditions for a parabolic run. The next parabolic run could turn into a golden opportunity for savvy investors. This is particularly true given that the world’s biggest producers are both facing similar issues. Soybeans could benefit from the supply issue in Brazil, and the expectation that prices will continue to rise. At the same time, it’s important to remain mindful of the risks involved in a parabolic run. Prices can be volatile, and there’s no guarantee that supply constraints and demand levels in the future will remain the same. As such, it pays to weigh up the pros and cons very carefully. All things considered, soybeans could be the next parabolic runner. High demand and supply issues in Brazil have caused prices to rise dramatically in the last 12 months. This could well be a golden opportunity for savvy investors, although they should also remain mindful of the risks.