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Soybean Futures Surge Over Weekend Soybean Futures Surge Over Weekend

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Solid Gains Wrap Up Trading Week

As the curtains fell on the trading week, the soybean futures market witnessed robust gains, with old crop soaring in double digits and new crop marking substantial 6 to 7 cent increases. Notably, the May contract notched a net gain of 9 ½ cents, while Nov soybeans closed the week with an impressive 8 ¼ cents surge.

Market Shifts and Commitment of Traders

Meanwhile, the weekly Commitment of Traders report shed light on managed money funds increasing soybean shorts during the week ending 2/27, resulting in a net short growth of 24k contracts to 160.7k contracts. Commercial bean hedgers also made moves, diminishing exposure by closing 122k contracts before March deliveries, leaving them 29k contracts more net long at 65,477.

Trader Positions and Industry Reports

Turning to trader positions, managed money traders held a significant 47,650 contracts net short in soymeal as of 2/27, up by 17k contracts, driven by new selling activities. On the other hand, soybean oil specs were 52.3k contracts net short, slightly lower than the previous week’s 52.8k contracts.

Industry Insights and Production Data

Data from the NASS Fats & Oils report confirmed that 194.8 million bushels of soybeans were processed in January, slightly below the average trade estimate and down 4.6% from December’s volume. Despite the decrease, the crush remained 1.9% higher than the same period last year. Notably, soybean oil stocks jumped to 2.029 billion lbs, surpassing expectations and December figures.

The EIA data reported a rise in soy oil used for biofuel production, reaching 1.14 billion lbs in December, up from 1.06 billion lbs in November.

Closing Numbers

Highlighting the closing figures, Mar 24 Soybeans finished at $11.43, climbing 14 3/4 cents, while Nearby Cash closed at $10.91, up 14 1/8 cents. The May 24 Soybeans ended at $11.51 1/4, marking a 10 1/2 cents increase. Additionally, Jul 24 Soybeans wrapped up at $11.61 1/4, up 10 cents, and Nov 24 Soybeans closed at $11.39 3/4, rising by 6 1/2 cents.

On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.