Soybean Futures Drop Midway
The soybean futures market experienced a setback on Tuesday, with prices settling 5 ½ to 7 cents lower after a promising mid-morning rally. The peak around $11.84 for May contracts quickly dissipated, leading to a gradual decline throughout the session. In contrast, Soymeal futures showed minimal movement, settling 40 to 70 cents per ton lower. Soy Oil faced persistent downward pressure, with prices continuing to fall by another 29 to 41 points following the sell-off on Monday.
Market Developments
Today, the USDA announced a significant export sale of 124,000 MT of soybeans to undisclosed destinations for the current 23/24 Marketing Year. Meanwhile, market analysts anticipate an increase in US 23/24 ending stocks in the upcoming WASDE report release on Thursday. The average trade estimate predicts a rise of 4 mbu to 319 mbu, with projections spanning between 300 to 345 mbu.
Furthermore, expectations for Brazilian soybean production have shifted, with estimates in the latest report registering a 2.7 MMT decline from March figures, totaling 152.3 MMT. Conversely, Argentine estimates suggest a 0.4 MMT increase to 50.4 MMT. The global carryout projection is predicted to decrease marginally by 0.5 MMT to 113.8 MMT, primarily due to the reduced Brazilian output.
Closing Numbers
May 24 Soybeans concluded at $11.74 1/2, down 7 cents,
Nearby Cash was at $11.20 3/4, down 6 7/8 cents,
Jul 24 Soybeans closed at $11.87 3/4, down 6 1/2 cents,
Nov 24 Soybeans ended at $11.78 1/4, down 6 cents,
New Crop Cash stood at $11.15 5/8, down 6 1/8 cents,
Disclaimer: Alan Brugler, the author, did not hold any positions in the securities mentioned in this article. The information presented here is for informational purposes only. For more details, refer to the Barchart Disclosure Policy here.
Please note that the opinions expressed herein belong solely to the author and may not necessarily represent those of Nasdaq, Inc.
