Soybeans are sitting 4 ¾ to 6 cents lower in early Wednesday market action. The overnight session for the March contract was entirely red and had gotten to -12c at the overnight low. Soy complex futures traded briskly higher on Tuesday with 1.3% to 2% gains for the beans, 2% to 2.5% gains for the meal and 0.7% to 1% gains for the bean oil. The front month soybeans settled Tuesday with 15 to 24 ½ cent gains for the day. Front month Soymeal futures ended Tuesday up by as much as $8.70. Soy oil futures were 31 to 45 points in the black closing the Tuesday session.
Preliminary open interest data showed net new buying in soybeans on Tuesday, rising 4,225 contracts. Soy oil showed some short covering, with OI declining 6,751 contracts.
USDA will release the monthly Fats & Oils report after the close. Trade estimates for December soybean crush average 206 million bushels, with a couple estimates at 207. Soy oil stocks are on average expected to build to 1.764 billion pounds due to the higher crush rate and a recent tendency for biofuels refiners to utilize imported used cooking oil instead of bean oil. At the average guess, BO stocks would still be at least 23% tighter than year ago.
Trade reports have an East Coast poultry producer importing Brazilian beans into the US for crushing. Brazilian export prices have been well below US East Coast delivered prices.
Mar 24 Soybeans closed at $12.18 3/4, up 24 1/2 cents, currently down 6 cents
Nearby Cash was $11.64 1/2, up 24 5/8 cents,
May 24 Soybeans closed at $12.27 3/4, up 22 3/4 cents, currently down 5 3/4 cents
Jul 24 Soybeans closed at $12.36 1/4, up 21 cents, currently 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.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
