Soybean Market Experiences Early Losses Amid Mixed Reports
Soybeans are trading down 12 to 14 cents early Thursday, following a 3-cent limit loss in bean oil. As the market approached Wednesday’s close, soybean contracts managed to cling to some gains, rising between 1 and 5 ¼ cents for most contracts. Preliminary open interest increased by 12,047 contracts on Wednesday. The May contract expired on Wednesday, resulting in 3 deliveries, bringing the monthly total to 29. Meanwhile, the cmdtyView Cash Bean price rose 5 cents to $10.27 3/4. In contrast, soymeal futures fell by $1.30 per ton, although Soy Oil futures increased by 52 to 72 points. Another 13 deliveries against May meal were noted at the expiration on Wednesday, with a monthly total of 1,437. For bean oil, deliveries totaled 10 for May on Wednesday and reached 1,529 for the month.
This morning, bean oil is exerting pressure due to wire reports citing lower-than-expected RVO levels. EPA Administrator Lee Zeldin also indicated on Wednesday that setting the mandates will occur in the coming months, later than previously anticipated by the market. Moreover, declining crude oil prices are contributing to the downward pressure.
USDA’s Export Sales report is set to be released on Thursday morning. Analysts surveyed by Reuters predict 2024/25 bookings will range from 200,000 to 500,000 MT during the week of May 8. New crop business is expected to account for 350,000 to 500,000 MT. Soybean meal sales are forecasted at 90,000 to 350,000 MT, while bean oil sales are projected between 0 and 34,000 MT.
Brazil’s CONAB has revised its soybean production estimate upward, increasing it by 0.47 MMT to 168.34 MMT.
NOPA data, also set for release Thursday, forecasts that a total of 184.64 million bushels of soybeans will have been crushed in April. This would represent a 5.1% decline from the previous month but a 9% increase year-over-year. Bean oil stocks are expected to reach approximately 1.412 billion pounds.
The Rosario Grains Exchange has raised its estimate for Argentina’s soybean crop by 3 MMT, now projecting it at 48.5 MMT.
Following are the latest soybean prices:
May 25 Soybeans closed at $10.67, down 1/4 cent.
Nearby Cash was $10.27 3/4, up 5 cents.
July 25 Soybeans closed at $10.77 3/4, up 5 1/4 cents, currently down 13 1/2 cents.
November 25 Soybeans closed at $10.61 1/4, up 1 3/4 cents, currently down 13 cents.
New Crop Cash was $9.98 1/4, up 2 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 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.
