Soybeans posted double digit losses on Tuesday, with contracts down 15 ¼ to 19 ¾ cents across the board. Soymeal was down $1.80 to $3/ton at the close. Soy Oil was in freefall mode, down another 69 to 140 points and hitting new contract lows. 

EIA reported that just 888 million lbs of bean oil was used in biodiesel production in February. That was down from 960 million lbs in January and was the lowest monthly use total since December 2022. Meanwhile, tallow and yellow grease inclusion has been rising for the last several months. As for bean oil stocks at the end of March, the trade is estimating 2.294 billion lbs. Traders are also expecting soy crush during March at 205.97 mbu ahead of tomorrow afternoon’s USDA report.

On Tuesday, the Biden administration released its guidance on SAF feedstock, allowing soy-based biodiesel to qualify only if producers use practices such as no-till and cover cropping. 

Across the US, only ND had no reported planting pace, which is normal, with IN and NE the only states reported as lagging, by 1%. IL was 8% above normal, with IA at 25% and more than double the 12% average pace. MN was 9% ahead of schedule, with MO 15% ahead of the average pace.

May 24 Soybeans  closed at $11.45 1/2, down 15 1/4 cents,

Nearby Cash  was $11.01 3/4, down 12 1/2 cents,

Jul 24 Soybeans  closed at $11.63, down 19 cents,

Nov 24 Soybeans  closed at $11.59 1/2, down 18 1/2 cents,

New Crop Cash  was $10.97 1/1, down 17 cents,

On the date of publication, Alan Brugler 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 here.

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