Soybean Market Recovers Slightly Despite Week-long Struggles
Market Overview and Recent Developments
Soybeans faced pressure throughout the week due to declining product values, but managed to rebound on Friday, closing with gains of 1 ¼ to 7 cents. January futures fell 15 cents since last Friday’s close. CmdtyView reported a national front month Cash Bean price increase of 5 3/4 cents, reaching $9.33. Soymeal futures saw gains ranging from $1.50 to $2.70 per ton, which helped limit the week’s losses to just 40 cents for December contracts. Conversely, Soy Oil futures dropped significantly, closing down 29 to 46 points, with December down 358 points since last Friday.
Export Sales and Market Positioning
This morning, the USDA announced a private export sale of 198,000 MT of 2024/25 soybeans to unspecified destinations.
Trader Positions and Commitments
According to the CFTC’s Commitment of Traders report, soybean speculators increased their net short position by 13,165 contracts, reaching a total of 67,701 contracts as of Tuesday. Commercial traders reduced their net short positions by 13,976 contracts, totaling 30,200 contracts as of November 19. In the soybean meal sector, large spec funds were net short 63,700 contracts, marking a near-record level with an increase of 36,069 contracts for the week.
Export Shipment Data
The weekly Export Sales report highlights that marketing year soybean shipments reached 17.395 MMT, which is 12% higher than last year. This amount represents 35% of the USDA’s full-year projection of 1.825 billion bushels, compared to the average pace of 32%. Current commitments stand at 31.584 MMT, reflecting a 9% increase from the same week last year, totaling 64% of the USDA projection, although this is behind the average pace of 67%.
Closing Prices for Soybeans
Jan 25 Soybeans closed at $9.83 1/2, up 5 3/4 cents.
Nearby Cash was $9.33, up 5 3/4 cents.
Mar 25 Soybeans closed at $9.92 1/4, up 7 cents.
Jul 25 Soybeans closed at $10.18 1/4, up 6 3/4 cents.
On the date of publication, Austin Schroeder 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 Barchart Disclosure Policy here.
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