Soy futures were mixed on USDA’s report day, with a Soy oil rally. The triple digit gains of as much as 2.5% helped soybeans stay in the black as well. Front month soybean futures were 1 ¾ to 4 ½ cents higher at the bell. Soymeal futures closed the session with $4.10 to $5.10 losses. re another 1% lower through Thursday. USDA reduced the cash average price for soybeans by a dime to $12.65, the soy oil price by 3 cents to 51 c/lb, and left the meal price UNCH at $380/ton.
USDA’s updated WASDE data had 35 mbu fewer soybean exports, which built carryout by the same amount. The only other S&D adjustment was a 1 mbu larger seed use, which came out of residual use. The trade was on average looking for a 4.6 mbu looser carryout, though at 315 mbu is still the loosest since 19/20.
The global updates reduced world soybean output by 770k MT to 398.2 MMT. USDA cut Brazil by 1 MMT to 156, though CONAB cut Brazil’s soybean production 5.9 MMT to 149.4 MMT - via a yield cut of 1.7 bpa to 51. World bean trade was 370k MT lower to 170.6 MMT, with stocks 1.43 MMT looser at 116 MMT. The trade was expecting to see a 113 MMT carryout.
Weekly FAS data showed soybean bookings were 341k MT for the week that ended 2/1. Estimates were to see at least 400k MT. Soybean commitments now sit at 38.454 compared to 47.1 MMT last year.
Mar 24 Soybeans closed at $11.93 1/2, up 4 1/2 cents,
Nearby Cash was $11.40 1/4, up 4 3/8 cents,
May 24 Soybeans closed at $11.99 3/4, up 2 1/4 cents,
Jul 24 Soybeans closed at $12.09 1/4, up 2 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.
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.
