Soybean Prices Decline Amid Export Sales and Market Pressure
Soybeans experienced a downturn on Friday, with contract prices falling by 10 to 12 cents. July futures declined by 18.5 cents this week, while November futures dropped 23.75 cents. The cmdtyView Cash Bean price decreased by 9.75 cents, settling at $9.95 1/2. Soymeal futures remained stable, with July rising just 10 cents this week. Conversely, Soy Oil futures fell another 145 to 150 points, totaling a 246-point decline for July this week.
The upcoming wetter weather pattern affecting the Northern Plains to the ECB contributed to this pressure. Prices for bean oil declined following reports that the White House plans to address the backlog of small refinery exemptions. Consequently, the RIN market weakened, further impacting soy oil.
Export sales data released showed 146,034 metric tons (MT) of old crop soybeans sold, below analyst estimates of 150,000 to 500,000 MT. This represents a 15-week low and a year-over-year decline of 55.8%. Mexico purchased 52,200 MT, while 2,400 MT went to Indonesia. New crop sales totaled 32,000 MT, against estimates ranging from 0 to 250,000 MT.
In total, soybean meal sales reached 603,169 MT, exceeding the expected range of 150,000 to 450,000 MT, marking the largest total since October. The Philippines acquired 158,400 MT, with Japan purchasing 97,000 MT. Bean oil sales amounted to 19,542 MT, within the estimate range of 5,000 to 32,000 MT, also marking a 7-week high.
As of May 27, large managed money speculators in soybean futures and options added 24,043 contracts to their net long position, bringing the total to 36,967 contracts. In soybean meal, speculation decreased by 13,681 contracts from a record net short position, totaling 93,785 contracts as of Tuesday.
Traders are awaiting monthly crush data due on Monday, anticipating an April total of 201.8 million bushels.
Jul 25 Soybeans closed at $10.41 3/4, down 10 cents.
Nearby Cash was $9.95 1/2, down 9 3/4 cents.
Aug 25 Soybeans closed at $10.36 3/4, down 11 3/4 cents.
Nov 25 Soybeans closed at $10.26 3/4, down 10 1/2 cents.
New Crop Cash was $9.64 1/2, down 11 1/2 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
