Market Movement
Soybeans are demonstrating resilience as they pull back from earlier strength, with contracts showing a fractional to 2 cents increase in the front months. Preliminary open interest data reveals short covering in the May contract and index funds shifting to July, contributing to a 2,944-contract rise in soybean open interest amidst mixed futures activity. Soymeal is trading $4.10 higher in May contracts at Midday, while Soy Oil is retracting by 100 points after showing strength the previous week.
Export Insights
The recent weekly Export Inspections report from the FGIS highlighted a 13.2% decrease in soybean shipments to 484,328 MT for the week ending on April 4. This figure also reflects a substantial 28.7% drop from the same period last year. Notably, nearly half of the total shipments were bound for China, with 215,344 MT, and another portion headed to Egypt totaling 85,231 MT. The year-to-date total soybean shipments to all destinations stand at 37.598 MMT, representing an 18.5% decline from last year and a 10.1% decrease from the 5-year average.
Global Harvest Update
According to AgRural, the Brazilian soybean harvest is 78% complete, slightly lagging compared to the 82% pace set last year. Meanwhile, Argentina’s BA Grain Exchange reports a 2% completion rate for the bean crop harvest, maintaining their crop estimate at 52.5 MMT, which is higher than USDA’s estimate of 50 MMT.
May 24 Soybeans are priced at $11.86 1/4, up 1 1/4 cents, with Nearby Cash at $11.31 1/8, also up 1 1/4 cents. Jul 24 Soybeans see a price of $11.98 3/4, with an increase of 2 cents, and Nov 24 Soybeans are at $11.86 1/4, up by 1 1/2 cents. Lastly, New Crop Cash stands at $11.23 7/8, showing a 1 7/8 cents uptick.
Disclosures: As of the publication date, Alan Brugler had no positions directly or indirectly related to the securities mentioned in this article. All information and data are provided for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.
Disclaimer: The author’s views and opinions expressed herein are personal and do not necessarily align with those of Nasdaq, Inc.
