Positive Momentum in Soybean Futures
The new crop soybean futures display a strong performance, trading 8 to 10 cents higher at midday, while old crop soybean futures show a promising increase of 8 to 9 ¾ cents. Soymeal prices also exhibit strength, up $2.40 to $2.80, although they remain down $6.60 for the week. Soy Oil futures are notably performing well, trading 14 points higher across the front months.
Global Market Influences
India’s heightened import of sunflowers and soy oil stems from soaring palm oil prices, a trend that continues to impact the market significantly. Meanwhile, StoneX has adjusted their estimate for Brazilian soybean production downward, citing lower yields in MGDS, Sao Paulo, and Parana, with the new output figure now set at 150.8 MMT.
Challenges in the Renewable Energy Sector
Hearwell Renewables faces delays in the completion of their Nebraskan renewable diesel plant, now postponed until 2026. Originally projected for this summer, the 80-million-gallon-per-year facility’s setback poses a challenge in the renewable energy landscape.
US Market Insights
US soybean crush for February slightly disappoints at 194 million bushels, as revealed by the USDA’s Fats & Oils totals released on Monday. Despite this, a notable detail is the 9% decrease in bean oil stocks by the end of February compared to February 2023.
Current Soybean Prices
May 24 Soybeans are at $11.74, witnessing a decline of 11 3/4 cents but currently up 6 cents. Nearby Cash stands at $11.19 1/4, down 11 1/2 cents, while Jul 24 Soybeans are at $11.87 3/4, down 11 3/4 cents, yet showing promise with a 5 1/4 cents increase. Nov 24 Soybeans are currently at $11.77, down 5 1/2 cents, with a current upward trend of 3 1/2 cents.
On the publication date, Alan Brugler held no positions in any securities mentioned. The information in this article is for informational purposes only. For further details, please refer to the Barchart Disclosure Policy.
The author’s views and opinions expressed herein are personal and do not necessarily align with those of Nasdaq, Inc.
