Soybean Market Faces Early Week Declines Amid Trade Uncertainty

Soybeans are experiencing losses at midday on the first trading day of the week, with prices dropping between 9 to 17 cents. Overnight, 220 deliveries against March soybean futures were reported, all issued by a Marex customer. The cmdtyView national front month cash bean price has decreased by 10 3/4 cents, now standing at $9.43 1/4. Additionally, soymeal futures are down by $20 per ton today. Soy oil futures saw a decline of 125 points last Friday. There were also 207 deliveries of March soybean meal and 479 deliveries against March bean oil overnight.

Export Inspections Show Decline

The latest Weekly Export Inspections report indicated that 695,158 metric tons (25.54 million bushels) of soybeans were shipped during the week ending February 27. This figure represents a 20.9% decrease from the previous week and a significant 40.1% drop compared to the same week last year. China emerged as the leading destination, receiving 350,023 metric tons, followed by Egypt with 64,591 metric tons and the Netherlands with 60,384 metric tons. Year-to-date marketing year exports now total 37.59 million metric tons (1.381 billion bushels), which is 9.6% higher than at this time last year.

Trade Tariffs Loom

Complicating the situation, President Trump is set to implement an additional 10% tariff on China starting this week. A report from Chinese media suggests that U.S. agricultural products may face retaliatory measures, including both tariff and non-tariff actions.

Speculative Trading Activity

As of February 25, speculators have reportedly reduced their net long positions in soybean futures and options by 8,317 contracts, bringing the total net long to 8,209 contracts as of Tuesday.

Upcoming Reports

Market analysts await the Fats & Oils report scheduled for later today, anticipating that the January crush total will reach 211.1 million bushels. Additionally, bean oil stocks are estimated at 1.761 billion pounds as of the end of January.

Brazilian Harvest Update

According to AgRural, the Brazilian soybean harvest is 50% complete as of last Thursday, which is 2% ahead of the same timeframe last year.

Current Soybean Prices

Mar 25 Soybeans: $9.96 3/4, down 14 3/4 cents

Nearby Cash: $9.43 1/4, down 10 3/4 cents

May 25 Soybeans: $10.09 1/2, down 16 1/4 cents

Nov 25 Soybeans: $10.18 1/2, down 11 cents

New Crop Cash: $9.54 1/4, down 9 3/4 cents

On the date of publication, Austin Schroeder did not have any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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