Soybeans and Soymeal Advance
Today’s new crop export transaction injected vitality into the soybean market, fueling robust double-digit gains. Soymeal futures led the charge, notching an impressive $8 surge, equating to a remarkable 2.4% uptick. The session culminated with beans crossing the coveted $12 threshold, boasting gains ranging from 14 ¾ to 23 cents. Interestingly, November prices now sport a 9 ¼ cent discount relative to spot prices. In tandem, Soy Oil futures rallied with over 1% gains, advancing by 80 points.
Canola Prices Ascend
Front month Canadian Canola Prices experienced an uptick of over 2% today, currently resting 13% above the lows seen in the contract.
Market Projections and External Factors
The USDA disclosed a sale of 120k metric tons of new crop soybeans to an undisclosed destination earlier today. For the week ending on 3/14, the weekly old crop export activity is anticipated to range between 250,000 MT and 800,000 MT. Expectations are set for new crop sales to fall below 100k MT in tomorrow’s report, with meal sales projected in the range of 150k MT to 450k MT. China’s move to approve GMO soybean varieties is aimed at ameliorating their disappointing average yields, which lag not only behind the US and Brazil but consistently trail the global average. Meanwhile, Brazil’s AgRural reported a 63% completion rate for soybean harvesting as of 3/14, showing a notable improvement from the 55% figure recorded last week.
Market Close
At the closing bell, May 24 Soybeans stood at $12.09 1/2, escalating by 24 cents, while Nearby Cash was priced at $11.52 1/4, marking a 23 1/4 cent surge. Additionally, Jul 24 Soybeans wrapped up at $12.23 1/4, up 23 cents, and Nov 24 Soybeans concluded at $12.00 1/4, posting an increase of 19 cents.
As of the publication date, Alan Brugler did not hold any positions (directly or indirectly) in the securities discussed in this article. The information provided in this article is purely for informational purposes. For further details, please refer to the Barchart Disclosure Policy.
The opinions and viewpoints expressed in this article belong to the author and do not necessarily align with those of Nasdaq, Inc.
