Beans faded into the calendar year end, with double digit losses of as much as 1.1%. The March contract finished below $13 for the first time since October, and ended the week with a net 8 cent loss and the month on a net 64 ¼ cent loss. The 2023 trading range for the March contract was from $11.45 to $14.28. Soymeal futures closed the day $4.50 to $7 weaker, with a $5.10 loss for the March contract for the week. Soy oil futures closed the last trade day of the year 19 to 35 points in the black, but 69 points in the red for the year and 4.4 cents in the red for the month.
Preliminary open interest for soybeans rose 7,707 contracts on Friday, net new selling on indications of heavier rainfall coming into some of the driest soybean areas of Brazil.
Chinese futures were Dalian Soybean Prices gapped lower on Tuesday after their 3-day break. Some contracts left a 3-4 yuan gap from the session high, before fading back to close 30 to 60 yuan in the red (roughly 11 ½ to 23 ¼ cents/bu). Their March contract settled at 4,930 (~$19.11/bu) while their Nov contract was 4,841 (~$18.76/bu) at the settle – compared to the 52c inverse in the CBoT futures.
There were zero delivery notices vs. January meal overnight, but Dreyfus put out 20 bean oil contracts, stopped by a Wells Fargo customer. There were 412 contracts put out vs. January soybeans, mostly by ADMIS clients. SG Americas customers stopped the largest percentage.
The CoT update showed soybean managed money spec traders with a 9,396 contract net short on 12/26. That was a 5.3k contract stronger net short for the week with fewer longs and new shorts in play. Commercial soybean hedgers were closing positions through the week, dropping 45.3k contracts for a net 1.5k contract weaker net short of 92,492. The CFTC reported soymeal spec traders were 15.6k contracts less net long at 59,233 contracts. That came via 9.8k fewer longs and 5.8k new shorts for the week. Managed money traders were 17.7k contracts more net short in soy oil given new spec selling for the week.
The weekly Export Sales report showed 984k MT of soybeans were booked during the week that ended 12/21. That was a 12 week low, and below published expectations. Total soybean commitments reached 36.34 MMT compared to 42.9 MMT last year. The week’s meal sales came in at 268k MT, which was inline with expectations and a 2-wk high. Meal commitments totaled 7.1 MMT as of 12/21. Soy oil sales were reported at 901 MT, leaving the season commitments at just 32,361 MT.
Jan 24 Soybeans closed at $12.93 1/2, down 11 3/4 cents,
Nearby Cash was $12.41, down 12 1/2 cents,
Mar 24 Soybeans closed at $12.98, down 14 cents,
May 24 Soybeans closed at $13.07 1/4, down 14 1/4 cents,
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
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