Soybean Futures Decline Despite Export Sales Boost
The soybean market saw a lack of positive movement this Thursday, despite good news from the export sector and a better-than-expected Export Sales report. Futures ended the day lower, with losses ranging from 7 ½ to 14 cents. CmdtyView reported the national front month Cash Bean price fell by 12 1/4 cents to $9.27. Continued product pressure is a significant issue impacting prices.
Rainfall Affects Brazilian Harvest
In Brazil, rain is forecasted for the coming week, although some areas may receive less than normal amounts for this time of year.
USDA Reports Significant Export Activity
Earlier today, the USDA announced a private export sale of 198,000 metric tons (MT) of soybeans to China for the 2024/25 marketing year, along with another 135,000 MT sold to an unknown buyer. Additionally, 133,000 MT of soybean meal was reported sold to the Philippines.
Weekly Export Sales Show Strong Demand
The latest Export Sales report indicated soybean sales at 1.861 million metric tons for the 2024/25 period. This figure surpassed the estimated range of 1 to 1.6 million metric tons for the week ending November 14. The sales represent a 19.6% increase from the previous week and are more than double the total from the same week last year. China was the largest purchaser, acquiring 1.197 million metric tons, followed by Mexico with 169,000 MT and the Netherlands with 143,400 MT.
Meal and Oil Sales Trends
For soybean meal, sales totaled 275,629 MT, aligning with the lower end of the expected range between 210,000 and 490,000 MT, and marking a 9.1% decline from the prior week. In terms of soybean oil, bookings reached 21,947 MT, fitting within the estimate range of 5,000 to 35,000 MT.
International Grains Council Adjusts Production Estimates
The International Grains Council revised its global production forecast down by 2 million MT to 419 million MT. Additionally, stocks were lowered by 4 million MT to 82 million MT due to increased consumption rates.
Current Market Prices
Jan 25 Soybeans closed at $9.77 3/4, down 12 3/4 cents.
Nearby Cash was $9.27, down 12 cents.
Mar 25 Soybeans closed at $9.85 1/4, down 14 cents.
Jul 25 Soybeans closed at $10.11 1/2, down 13 3/4 cents.
On the date of publication, Austin Schroeder did not hold positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
