Soybean Market Fluctuates as Exports and Weather Factors Come into Play
Soybean prices are showing declines on Tuesday morning, with contracts slipping by 7 to 10 cents. While the market pulled back from earlier highs, it managed to finish Monday’s session with gains ranging between 3 ¼ and 11 ½ cents. According to CmdtyView, the national front month Cash Bean price increased by 6 1/4 cents to $9.42. On the other hand, soymeal futures dropped between 80 cents and $1.50 per ton, while Soy Oil futures rose by 36 to 49 points during the session. Overnight, there were no deliveries against January soybeans, though 129 were issued against January meal and 16 against January bean oil.
In terms of weather, Southern Brazil is expected to see precipitation in the coming 8-14 days, while Argentina will experience some sporadic showers.
Traders Adjust Positions as Market Dynamics Shift
The latest Commitment of Traders report reveals that managed money reduced their net short position by 25,436 contracts during the last week of the year. This adjustment primarily resulted from short covering, leaving the net short at 42,447 contracts as of December 31. Similarly, speculation in soybean meal saw a decrease in the previous record net short position, which fell by 31,429 contracts to 64,942 contracts.
Export Data Highlights Changing Market Trends
Export Inspections data showed that 1.285 MMT (47.21 million bushels) of soybeans were exported during the week that ended on January 2. This reflects a 21.8% decrease compared to the previous week but an increase of 23.5% compared to the same week in 2024. China emerged as the top destination, importing 559,696 MT, followed by 136,461 MT to the Netherlands. For the marketing year, total shipments reached 29.956 MMT (1.101 billion bushels), marking a 23.2% increase from the same period last year.
In Brazil, soybean exports during December were reported at 2.004 MMT, which represents a significant decline of 47.65% from the same month last year.
As of January 25, Soybeans closed at $9.92 1/2, up 11 1/2 cents, but are currently down 9 1/4 cents. Nearby Cash was reported at $9.42, a rise of 6 1/4 cents.
For Mar 25 Soybeans, the closing price was $9.97 3/4, up 6 cents, though it is currently down 9 1/2 cents. Additionally, Jul 25 Soybeans closed at $10.20 1/2, reflecting a gain of 4 cents but is now down 7 3/4 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 the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
