“Along with macroeconomic concerns, soybeans were pressured after private analytics firm Informa Economics raised its forecast of U.S. 2013 soybean plantings to 79.987 million acres, which if realized would be the most on record.” In addition, Soybean prices now are highly related to weather problems of South America.

I have not offset my  two short contracts of soybean yet, and I am uncertain of predicting the future prices. Soybean markets have been more likely to fluctuated than the other commodities(corn and wheat) we are trading.

In the past week’s 501 lectures, Professor mentioned corn and soybean prices are on average 60% positively related( because of they are substitutes for major feed ingredient). So I would offset the soybean contracts I am holding with trading corns.

References:

1.http://www.grainews.ca/news/u-s-soybeans-fall-wheat-pares-gains-on-macro-worries/1001782004/

2.http://futures.tradingcharts.com/news/futures/DJ_U_S__SOY__Beans_Ease_on_Profit_Taking__Export_Sales_Disappoint_187726008.html