Soybean Market Faces Pressure with New Tariffs and Planting Data

Soybeans are experiencing ongoing weakness as Wednesday’s trading shows losses of 11 to 14 cents in most nearby contracts. The cmdtyView national front month Cash Bean price fell 14 1/4 cents to $9.33. Additionally, soymeal futures dropped by $1.90 per ton for nearbys, while soy oil futures decreased by 33 points. The overnight session reported 60 deliveries for March soybeans, 0 for meal, and 56 for March bean oil.

Impacts of Upcoming EU Tariffs

Retaliatory tariffs from the European Union, prompted by President Trump’s steel and aluminum tariffs, are set to start in early April and are likely to affect soybean exports. Although the EU currently has no US soybeans registered, the United States has shipped approximately 4.5 million metric tons (MMT) of soybeans to the region this marketing year.

Export Sales Report on the Horizon

The USDA will publish its weekly Export Sales report on Thursday morning. Analysts estimate that soybean sales for the 2024/25 crop year will range between 275,000 and 700,000 MT, with new crop sales anticipated to be between 0 and 100,000 MT. Regarding soybean meal, sales are projected within 190,000 to 410,000 MT, while bean oil sales are forecasted between 40,000 and 85,000 MT.

Canadian Planting Intentions

This morning, Stats Canada released its planting intentions data, revealing that producers plan to plant 21.65 million acres of canola this year, marking a 1.7% decrease from last year if these intentions are fully realized. Soybean acreage is estimated at 5.64 million acres, reflecting a year-over-year decline of 1.37%.

Brazilian Export Expectations and Labor Issues

Brazil is projected to export 15.45 MMT of soybeans in March, according to ANEC, a slight increase from their previous estimate of 14.8 MMT. Meanwhile, an Argentine oilseed union has canceled a planned strike at processing plants following a government directive.

Current Price Overview

March 25 Soybeans are priced at $9.86, down 11 3/4 cents.

Nearby Cash is quoted at $9.33, down 14 1/4 cents.

May 25 Soybeans stand at $9.96 3/4, down 14 1/2 cents.

November 25 Soybeans reflect a price of $10.03, down 12 1/2 cents.

New Crop Cash is at $9.39 3/4, down 12 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 are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

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