Soybean Market Gains Momentum Amid Weather Concerns and Trade Talks

Prices Rally as Weather Patterns Shift in South America

The soybean market saw positive movement on Tuesday, with prices rising between 20 to 34 cents. This increase was supported by favorable South American weather forecasts and easing trade discussions. According to CmdtyView, the national front month Cash Bean price surged by 33 cents, reaching $10.07 ½. Soymeal futures also experienced a rise, increasing by $14.10 per ton, while Soy Oil climbed back up by 8 points. Forecasts indicate that parts of Argentina might face continued dryness in the coming 8-14 days, even though the next week is expected to bring only sporadic rainfall.

USDA’s Export Inspections report revealed that 973,145 MT (35.76 million bushels) of soybeans were shipped during the week of January 16. This figure marks a decline of 17.9% compared to the same week last year and a 28.3% drop from the prior week. Notably, China remains the largest consumer, receiving 494,617 MT, along with 90,784 MT shipped to Mexico. Year-to-date marketing sales have reached 32.298 MMT (1.187 billion bushels), which is still 20.6% higher than the same period last year.

In a recent development, President Trump announced a less aggressive strategy towards tariffs, choosing to delay further implementation to reassess existing trade agreements with China, Canada, and Mexico.

AgRural reports that as of last Thursday, 1.7% of the Brazilian soybean crop has been harvested. Additionally, Abiove has updated their estimate for the Brazilian soybean crop to 171.7 MMT, an increase from their previous forecast of 168.7 MMT.

Mar 25 Soybeans closed at $10.67 1/4, gaining 33 1/4 cents.

Nearby Cash was priced at $10.07 1/2, up 33 cents.

May 25 Soybeans ended at $10.77 3/4, up by 33 cents.

Nov 25 Soybeans closed at $10.49 3/4, rising 22 cents.

New Crop Cash was at $9.84 1/4, increasing by 22 1/4 cents.

On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.