Soybeans are fractionally higher early on Wednesday after seeing an overnight range from -5 ¾ to +1 ¾ cents (Mar). Front month soybean futures fell 19 ½ to 26 ¼ cents per bushel on Tuesday. The March contract was a nickel off the low by the close. Soymeal futures ended near the low with $6.20 to $7.10 in the red at the close. Soy oil futures finished off their lows and mostly in the black on 8 to 11 point gains past Jan’s 5 point loss.
Monthly data from EIA showed soy oil use as a feedstock for fuel dropped from 1.207 billion lbs in Sep to 1.602b in October 23. That was a 6 month low draw for the feedstock, as its use for renewable diesel fell by 171 million to 416m and use for traditional biodiesel saw a 25m lb uptick to 645. Canola’s use in renewable diesel production fell by 4m lbs to 165m in October and Corn oil’s fell by 52 to 248 million. On net, total biodiesel production capacity was 2.079 billion gallons (+9m) and renewable diesel capacity was 3.587 billion (+153m).
The monthly NASS Fats & Oils report had the November soy crush as 200.07 mbu. That was slightly below the all time high in October due to one less day in the month, but was just the 2nd month ever above 200 mbu. NOPA members had already reported 189.04 mbu, leading analysts to expect 200. Soybean oil stocks as of Nov 30 were 1.162 billion lbs, compared to 1.062 billion in October. That was the first monthly build in 7 months.
Weekly Export Inspections data showed 961,694 MT (35.336 mbu) of soybeans was exported during the week that ended 12/28. That was a 156k MT drop for the week and was down 38% from the same week last year.
Private analysts at StoneX lowered their production forecast for Brazilian soybeans by 9.1 MMT to 152.8 MMT. That would be below the official total for last year’s 22/23 crop.
Jan 24 Soybeans closed at $12.74, down 19 1/2 cents, currently UNCH
Nearby Cash was $12.18 3/8, down 25 cents,
Mar 24 Soybeans closed at $12.73 1/2, down 24 1/2 cents, currently up 1/4 cent
May 24 Soybeans closed at $12.81, down 26 1/4 cents, currently up 3/4 cent
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