Weekend elections in Taiwan changed the government leadership from an alliance with the USA to supporting re-alignment with mainland Communist China. This political shift redirects economic and military priorities directly toward mainland China. With the terrible riots protesting the Chinese Communist government in mainland China in the weeks leading up to Taiwan’s election, the election result kinda makes a person wonder who was in charge of the vote counting. But then, in the days leading up to and the day of the election, China did make a very threatening show of its military power with Naval combat ships and aircraft in Taiwan’s territorial waters and airspace. None-the-less, reduced friction between China and Taiwan is bullish soybeans.
Some support for beans yesterday also came from the fact Argentine farmers did not stampede their truck loads of beans to market on the first day of the “soy dollar” subsidized peso to US dollar exchange rate. That causes one to consider that maybe the farmers in Argentina do not have very many beans left.