Soybeans are trading with losses of 6 to 7 cents so far on Monday morning. Soon to expire August soybean futures popped 18 ¼ cents in very thin trading on Friday, while the rest of the bean contracts settled 4 ¾ to 6 cents lower. Soymeal futures were down $5.60 to $9.00 per ton despite the strike in Argentina and potential disruptions to exports of meal and oil. Soy Oil futures settled 20 to 38 points higher. In addition to the Argentine situation, there is an investigation underway to determine if used cooking oil being imported for renewable biodiesel conversion is really that, or the less “green” virgin palm oil. If the imports are not legit, it might favor more soy oil inclusion in renewable diesel production.
USDA reported a couple different export sale announcements on Friday morning, with 132,000 MT of new crop sold to China and 212,000 MT of soybeans sold to unknown during the ‘reporting period’ (50,000 MT for old crop and 162,000 MT for new crop). There was also a total of 100,000 MT of bean meal sold to Columbia, with 12,000 MT for 2023/24 and 88,000 MT for 2024/25.
The monthly WASDE report on Monday is expected to show soybean stocks for old crop soybeans rising 5 mbu to 350 mbu. New crop estimates are running 465 mbu on average, up 30 mbu, mainly on expected production increases. The range of new crop stocks estimates is still wide at 380 to 555 mbu.
Friday afternoon’s Commitment of Traders report showed that as of Tuesday, the managed money spec funds were still net short 169,016 contracts of soybean futures and options. That was a reduction of 9,575 contracts for the reporting week.
Aug 24 Soybeans closed at $10.28, up 18 1/4 cents, currently down 7 cents
Nearby Cash was $9.73 1/4, down 6 1/2 cents,
Sep 24 Soybeans closed at $9.88 3/4, down 4 3/4 cents, currently down 6 cents
Jan 25 Soybeans closed at $10.19 1/4, down 5 3/4 cents, currently down 6 cents
New Crop Cash was $9.46, down 5 3/4 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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