What's Going On With Soybeans?

Angie Maguire was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Soybean futures recovered slightly on Wednesday from a sell-off sparked by a higher than expected crop monthly crop forecast.

"Down 15 cents in one day is never pretty," a farmer services company executive told Benzinga.

Angie Maguire, vice president of grain for Citizens LLC, said the forecast may under-estimate demand from China, while a summer dry spell could muck-up predictions.

Citizens provides services and supplies to about 300 farmers mostly in Michigan.

The U.S. Department of Agriculture on Monday predicted U.S. soybean stockpiles in 2016 of 500 million bushels, versus a consensus of about 438 million bushels and up from the 350 million bushels expected this year.

Soybean futures were selling at $9.75 a bushel on Wednesday on the Chicago Board of Trade, up about $0.08 from Tuesday's settling price.

"The USDA really gave us a bearish number," Maguire said. "A lot of folks are saying beans need to go lower."

But Maguire said "a dry spell in August" could wreak havoc with the government's forecast, while "demand from China has the potential to swing things."

Listen to the show below: