Soybean Prices Decline Amid Oil Pressure and Sales Reports

Soybean prices are under pressure as midday losses range between 9 to 11 cents. The cmdtyView Cash Bean price decreased by 9 1/4 cents, reaching $9.96. Meanwhile, soymeal futures increased by $0.60 per ton, while soy oil futures fell by 165 points.

The decline in bean oil follows news that the White House is planning to tackle the backlog of small refinery exemptions. This has contributed to a reduction in the Renewable Identification Number (RIN) market, further pressuring soy oil prices.

Export Sales Data Reveals Weakness

This morning’s Export Sales data indicated 146,034 metric tons (MT) in old crop bean sales, which fell short of analyst expectations of 150,000 to 500,000 MT. This figure marks a 15-week low and is down 55.8% compared to last year. Notably, Mexico purchased 52,200 MT, while Indonesia bought 2,400 MT. New crop sales were reported at 32,000 MT, also below estimates ranging from 0 to 250,000 MT.

In contrast, soybean meal sales reported a robust total of 603,169 MT, surpassing the forecast of 150,000 to 450,000 MT. Sales for the current marketing year reached 424,649 MT, the highest since October. The Philippines accounted for a significant portion, purchasing 158,400 MT, along with 97,000 MT sold to Japan. Bean oil sales stood at 19,542 MT, falling within the estimate range of 5,000 to 32,000 MT and marking a seven-week high.

Weather Conditions Affect Market

A wetter weather pattern expected over the next week, affecting regions from the Northern Plains to the Eastern Corn Belt (ECB), is adding additional pressure to prices.

Current Market Prices

Jul 25 Soybeans are priced at $10.42 1/2, down 9 1/4 cents.

Nearby Cash stands at $9.96, down 9 1/4 cents.

Aug 25 Soybeans are at $10.38, down 10 1/2 cents.

Nov 25 Soybeans are priced at $10.27 1/2, down 9 3/4 cents.

New Crop Cash is at $9.69 1/2, down 5 1/2 cents.

On the date of publication, Austin Schroeder did not hold any positions in the mentioned securities. All information is provided for informational purposes only. For more details, please refer to the Barchart Disclosure Policy.

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