Soybean Prices Surge Midweek
As midweek unfolded, front-month soybeans soared by 6 ½ to 8 ¼ cents. The market witnessed a notable recovery in meal prices, accompanied by a robust strength in soy oil. Soymeal prices closed the day with gains ranging from $1.50 to $1.70, indicating a promising trend in the market. Meanwhile, nearby Soy Oil futures saw significant gains of 22 to 25 points.
Challenges in Brazilian Soybean Production
StoneX recently revised its estimate for Brazilian soybean production due to lower yields in MGDS, Sao Paulo, and Parana regions. The new output estimate has been pegged at 150.8 MMT, reflecting the challenges faced by the industry.
Construction Delay for Nebraskan Renewable Diesel Plant
Hearwell Renewables announced a setback in the completion of its Nebraskan-based renewable diesel plant. Initially projected to be finished this summer, the 80 million gallon per year plant’s construction is now delayed until 2026, adding a layer of uncertainty to the company’s plans.
US Soybean Crush Disappoints
February’s US soybean crush figures fell slightly below expectations, totaling 194 million bushels as per USDA’s official Fats & Oils totals released on Monday. While this may have been overlooked by some, it resulted in a 9% reduction in bean oil stocks at the end of February compared to the same period in 2023, hinting at potential market shifts.
May 24 Soybeans soared to a closing price of $11.82 1/4, up 8 1/4 cents, while Nearby Cash closed at $11.28 1/1, climbing 8 3/4 cents. Furthermore, Jul 24 Soybeans concluded at $11.95 1/4, up 7 1/2 cents, and Nov 24 Soybeans finished at $11.84 3/4, marking an increase of 7 3/4 cents.
On the day of publication, Alan Brugler did not have any positions in the securities mentioned in this article. The information provided is solely for informational purposes. For more details, please refer to the Barchart Disclosure Policy.
The opinions expressed in this article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.
