Soybeans $10 Reversion Risks? Way Long Hedge Funds Hedge funds are the longest soybean futures in about three years, supply from Brazil is huge and US prices are at a premium. Reversion risks appear elevated. Some combination of WTI crude oil staying above $100 a barrel, a Corn Belt drought or large Chinese purchases of US soybeans may be necessary to sustain prices above $12 a bushel. My graphic features managed money (hedge funds) at about 21% net-long soybean complex open interest as of the latest data to May 15 -- the highest since 1Q23 -- with the front soybean future bumping up against $12 resistance. November futures at $11.71 may be at greater risk of dropping toward $10 -- the foundation that soybeans rebounded from in 4Q upon the last meeting between Presidents Donald Trump and Xi Jinping. Back then, US futures were at a steep discount and specs were short. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/tevaq7kip3vn {BI COMD} #soybeans #futures #Trump #China @BBGIntelligence(Mike McGlone)