Soybean Market Experiences Mixed Results as Week Ends
Pressure Prevails Ahead of USDA Outlook Forum
Soybean prices faced downward pressure on Friday, with declines ranging from 1 to 6 cents across contracts maturing this November. However, March futures managed a gain of 3 ½ cents over the week. The cmdtyView national front month Cash Bean price dipped by 4 ½ cents, landing at $9.81 3/4. Soymeal futures decreased by $1.40 per ton, while Soy Oil futures fell by 41 points. March options reached expiration today, with soybeans settling at 1040.
Speculators in the soybean market reduced their net long positions during the week ending February 18, decreasing by 11,949 contracts. This left the net long position at 16,526 contracts of futures and options, as highlighted in the latest Commitment of Traders report released on Friday.
This morning’s export sales report revealed that 480,278 metric tons of soybeans were sold during the week of February 13, marking a significant increase of 158.9% from the previous week and surpassing the same week last year. Among the purchasers, China bought 101,200 metric tons, while Egypt and Mexico acquired 75,700 metric tons and 73,800 metric tons, respectively. Commitments for the 2024/25 crop now stand at 43.736 million metric tons, comprising 88% of the USDA’s projected export total and aligning with the five-year average. However, sales for the new crop amounted to just 19,342 metric tons, distributed between Mexico and Japan.
Soybean meal bookings hit a four-week low at 316,907 metric tons. Vietnam was the largest buyer, purchasing 177,600 metric tons. In contrast, bean oil bookings increased to 19,408 metric tons, rebounding from the previous week’s decline.
Looking ahead to the USDA Outlook Forum next week, a Bloomberg survey of analysts forecasts a total of 84.4 million acres planted with soybeans. This figure reflects a decrease of 2.7 million acres from last year’s total, as all respondents expect lower planting totals ranging from 83.1 to 86.5 million acres.
Mar 25 Soybeans closed at $10.39 1/2, down 6 cents.
Nearby Cash was $9.81 3/4, down 4 1/2 cents.
May 25 Soybeans closed at $10.57 1/4, down 5 3/4 cents.
Nov 25 Soybeans closed at $10.59 3/4, down 1 1/2 cents.
New Crop Cash was $9.96 1/2, down 1 1/2 cents.
On the date of publication, Austin Schroeder did not hold any positions, either directly or indirectly, 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
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