Soybean Prices Decline as USDA Report Reflects Stable Estimates

Soybean prices fell on Tuesday, with closing values 1 to 3 cents lower. The cmdtyView national front month cash bean price decreased by 2 cents to $9.47 1/4. Soymeal futures remained steady to down, showing a reduction of 50 cents per ton in the nearbys, while soy oil futures dropped by 28 points.

USDA Report: No Changes in US Balance Sheet

The USDA’s WASDE report issued this morning indicated no modifications to the U.S. balance sheet. The carryout remains unchanged at 380 million bushels (mbu), aligning with market expectations. Additionally, the average cash price for U.S. soybeans saw a 15-cent reduction, now at $9.95.

Global Soybean Supply Updates

In the same report, the USDA also did not alter projections for major world suppliers, keeping Brazil’s output at 169 million metric tons (MMT) and Argentina’s at 49 MMT steady. A notable change, however, was a 2 MMT increase in Chinese crush, reducing their ending stocks to 43.96 MMT. As a result, world ending stocks fell by 2.93 MMT to a total of 121.41 MMT, impacted by the Chinese reduction and a 1 MMT rise in Argentina’s crush.

Projected Exports and Strike Threats

According to ANEC, Brazil’s soybean exports for March are anticipated to reach 15.45 MMT, an increase from the previous estimate of 14.8 MMT. Meanwhile, plans for a strike by some Argentine oilseed union workers will commence on Wednesday at processing plants, potentially affecting local production.

Current Soybean Market Prices

Mar 25 Soybeans closed at $9.97 3/4, down 2 cents.

Nearby Cash was $9.47 1/4, down 2 cents.

May 25 Soybeans closed at $10.11 1/4, down 2 3/4 cents.

Nov 25 Soybeans closed at $10.15 1/2, down 2 1/4 cents.

New Crop Cash was $9.51, down 2 1/4 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
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