Soybean futures rose by more than 2.5% to trade above $10.40 per bushel on Monday, reaching a three-month high as follow-through buying momentum continued after the U.S. Department of Agriculture (USDA) cut its estimates for the 2024 U.S. soybean crop. The USDA’s recent report showed lower-than-expected production and ending stocks, driving bullish sentiment in the market. The surge in prices was also supported by concerns over weather-related delays in Brazil, the world's largest producer, where farmers have reduced the soybean area planted this year compared to the previous year. Analysts noted that the strong gains in soybean futures were primarily driven by the risk to large short positions rather than a change in fundamental demand and supply dynamics.
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