Turning of the Tide?

Following the price decline in December, the soybean market seemed to find some footing through the flip of the calendar. New reports that China was beginning to auction off state reserves – this would make room for China’s new soybean purchases from the U.S. and in the market’s eyes ‘new demand.’ Using the quotations is intentional because as we know, the USDA had already plugged in China demand into the balance sheet. And with their nonexistent purchases in the first half of the marketing year