Soybeans experienced a slight decline of 5 to 7 cents on Monday morning, following a surge in prices at the Sunday night open. However, some new crop contracts did see an increase. The futures market saw gains of 6 to 10 cents in the nearby contracts on Friday, with May closing up 17 ½ cents for the week and November up 13 ¼ cents. Preliminary open interest also rose by 3,261 contracts on Friday, with an additional 158 deliveries issued in the evening. The national average Cash Bean price was up 9 1/4 cents at $10.94.
In terms of other soybean products, Soymeal futures remained steady to $2.10 lower in the front months, while Soy Oil futures were firm to 9 points higher in the nearbys. May saw a significant rally of 255 points last week. Crude oil prices provided some support to bean oil, rising by $5.07 following the US/Israel strikes on Iran over the weekend. However, uncertainty surrounding US/China relations post-attacks has put pressure on soybeans.
The average close for November soybean futures in February was $11.09, marking a 55-cent increase from last year’s spring soybean crop insurance price. Managed money also added 20,591 contracts to their net long position as of 2/24, bringing the total to 184,202 contracts according to CFTC data released on Friday.
USDA’s Export Sales report for the week of February 19 showed a total soybean export commitment of 35.65 MMT, a 19% decline from the same period last year. This figure represents 83% of the USDA export estimate, lagging behind the 91% average pace. Additionally, USDA’s Fats & Oils report is set to be released later today, with traders anticipating a January crush total of 226.3 million bushels.
AgRural estimates that the Brazilian soybean crop is 39% harvested, still below the 50% mark from the same period last year. They also revised their projection for the country’s bean output down by 3 MMT to 178 MMT.
In closing, Mar 26 Soybeans closed at $11.57 1/4, up 9 1/2 cents, currently down 7 cents, while Nearby Cash was $10.94, up 9 1/4 cents. May 26 Soybeans closed at $11.70 3/4, up 7 1/4 cents, currently down 6 cents, and Jul 26 Soybeans closed at $11.82 3/4, up 6 1/2 cents, currently down 5 3/4 cents.
Please note that on the date of publication, Austin Schroeder did not have any positions in the securities mentioned in this article. All information provided is for informational purposes only. This article was originally published on Barchart.com.
