Soybean Market Faces Challenges Amid Historic Crushing Rates

Recent Trends Highlight Export Activity and Planting Progress

Soybeans started the week with declines, losing 4 to 5.5 cents in price. According to CmdtyView, the national front month cash bean price decreased by 3 cents, settling at $9.36. Soymeal futures added to the bearish sentiment, dropping 40 cents per ton. Soy Oil futures also contributed to the downward pressure, decreasing between 9 and 36 points during the session.

In a notable development, the USDA announced a private export sale of 134,000 metric tons of soybeans to China for the 2024/25 marketing year.

The monthly Fats & Oils report revealed that 215.76 million bushels of soybeans were crushed for bean oil in October, setting a new record that surpassed analyst predictions of 210.9 million bushels. This figure marked a 15.7% increase compared to September and was 7.15% higher than last year’s numbers. Currently, soybean oil stocks are estimated at 1.485 billion pounds, reflecting a 1.1% decline from both last year and the previous month.

According to export inspections data, soybean shipments reached 2.088 million metric tons (76.73 million bushels) during the week of November 28. This number represents a substantial 78% rise from the preceding week but a slight 1.4% decrease compared to the previous week. China was the largest recipient, receiving 952,095 metric tons, while Italy imported 548,461 metric tons. Total shipments for the marketing year have now reached 21.793 million metric tons (800.74 million bushels), up 16.2% from the same time last year, marking the highest year-to-date total in four years.

In Brazil, AgRural reports that as of Thursday, 91% of the soybean crop has been planted, an improvement over the 85% planted during the same week last year.

Additionally, the Commitment of Traders report released on Monday afternoon indicated that managed money added 13,771 contracts to their net short positions in soybean futures and options as of November 26. This brought their total position to 81,472 contracts on Tuesday. Meanwhile, soybean meal speculative positions have grown closer to a record net short of 75,416 contracts.

Jan 25 Soybeans closed at $9.85 1/4, a decrease of 4 1/4 cents.

Nearby Cash stood at $9.36, down 3 cents.

Mar 25 Soybeans ended at $9.91, down 5 cents.

Jul 25 Soybeans finished at $10.16 1/2, down 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 those of the author and do not necessarily reflect those of Nasdaq, Inc.