25 September 2020
- Supply is rising quickly, which is not related to any new US crop considerations. The increase is formed by shifts along the global supply chain for beans. The trend in supply for the last 2 weeks has now formed a negative divergence with price, so the bulls should exercise caution.
- Our spot demand view (2-4 weeks out) remains firmly bullish. This is partially down to the support offered by the FX markets and discussed on the previous page. Downstream demand (crush mills level) is particularly supportive in the short-term (October), but we remain cautious for the prospects later in Q.