Soybean Market Sees Mixed Results Ahead of USDA Report
Soybeans managed a recovery on Friday after initial losses, closing with the front month prices steady to ¼ cent higher while other contracts dipped between 1 ¼ and 2 ¾ cents. January futures ended the week with a 4 ¼ cent gain. CmdtyView’s national front month Cash Bean price increased by 1/4 cent to $9.45. Meanwhile, soymeal futures decreased by $1.70 to $3.60 per ton, while soy oil futures rose by 61 to 72 points during the session.
Traders Adjust Positions Ahead of Key Report
The latest Commitment of Traders report revealed that managed money cut 9,255 contracts from their net short positions in soybean futures and options as of December 3, bringing the total to 72,217 contracts by Tuesday. Additionally, soy meal speculators reduced their near-record net short positions by 2,117 contracts, resulting in a total of 73,299 contracts.
Market Anticipates USDA Report
Looking to the upcoming USDA report, analysts expect minimal changes to the U.S. balance sheet, with a Reuters survey indicating an average estimate of 469 million bushels (mbu), down just 1 mbu from November’s total.
Export Sales Reflect Strong Demand
The weekly Export Sales report shows soybean shipments for the marketing year at 21.703 million metric tons (MMT), which is 19% higher than last year and constitutes 44% of USDA’s annual projection of 1.825 billion bushels (bbu)—slightly above the 40% average pace. Total commitments now stand at 36.185 MMT, marking a 12% increase from the same week last year, which represents 73% of the USDA projection, now ahead of the 72% average pace following earlier delays in the season.
Jan 25 Soybeans closed at $9.93 3/4, steady,
Nearby Cash was $9.45, up 1/4 cent,
Mar 25 Soybeans closed at $9.99 1/4, up 1/4 cent,
Jul 25 Soybeans closed at $10.20, down 2 1/4 cents.
On the date of publication, Austin Schroeder 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.
