Soybean Prices Rise as Export Sales Exceed Expectations

Soybeans experienced a significant rebound on Thursday, with contract prices closing higher by 5 to 11 cents. According to CmdtyView, the national front month cash bean price increased by 10 1/2 cents to reach $9.48 1/2. Meanwhile, soymeal futures also saw upward movement, climbing $4.70 to $7.90 per ton for nearby contracts. Conversely, soy oil futures fell by 29 to 40 points. In a related development, union workers at Argentina’s soybean processing plants initiated a strike overnight but suspended their protests by Thursday afternoon.

USDA Report Highlights Strong Soybean Export Sales

The USDA’s Export Sales report released this morning indicated robust soybean bookings, totaling 751,651 metric tons (MT) for the 2024/25 crop year, surpassing trade expectations. This figure marks a seven-week high and is significantly above the same week last year. China emerged as the largest buyer, acquiring 208,300 MT, most of which were previously classified as unknown purchases. Indonesia followed as a notable buyer with 151,800 MT. For the new crop, sales stood at 43,144 MT. Cumulatively, export commitments for 2024/25 have reached 45.069 million metric tons (MMT), which is 14% larger than the previous year. This total constitutes 91% of the USDA’s export forecast for the current marketing year, aligning with the average sales pace.

Additional Insights on Soybean Products and Crop Estimates

On the soymeal front, sales decreased to 186,361 MT, falling short of estimates that ranged from 190,000 to 410,000 MT. For soybean oil, sales were reported at 68,512 MT, falling within the estimated range of 40,000 to 85,000 MT.

Furthermore, the Rosario Grains Exchange revised its soybean crop projection for Argentina downward by 1 MMT to 46.5 MMT. In contrast, CONAB increased its estimate for Brazil’s soybean crop by 1.36 MMT, now projected at 167.37 MMT.

Market Prices Summary

In the market, March 25 soybeans closed at $9.96 3/4, reflecting an increase of 9 1/4 cents. Nearby cash prices stood at $9.48 1/2, up 10 1/2 cents. Additionally, May 25 soybeans closed at $10.10 3/4, rising by 10 1/4 cents, while November 25 soybeans ended at $10.11 3/4, marking an increase of 5 1/4 cents. New crop cash prices adjusted to $9.47 1/4, up 5 1/4 cents.

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

More news from Barchart

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