Soybean Market Struggles Despite Export Gains
The soybean market faced declines today, despite a notable export report. Contracts ended lower, with January futures down 5 3/4 to 8 ¼ cents, closing the day at a loss of 5 ½ cents for the week. The average national Cash Bean price reported by CmdtyView fell 7 1/2 cents to $9.39 3/4. Similarly, soymeal futures decreased by $2.40 to $3.60 per ton, while soy oil futures dropped between 3 to 19 points.
Trader Positions and Market Dynamics
According to the CFTC Commitment of Traders report, speculators decreased their net short position in soybean futures and options, covering 13,897 contracts as of December 10, bringing the total to -58,320 contracts. Conversely, commercial traders expanded their net short position to 27,087 contracts, an increase of 7,898 contracts.
Exports Show Promise but Challenges Remain
The USDA announced a private export sale of 200,000 metric tons of soybeans to unknown destinations for the 2024/25 season. Current export sales are reported at 23.487 million metric tons, up 22% from the previous year and reaching a four-year high. This amount represents 47% of the USDA’s total estimate of 1.825 billion bushels, exceeding the typical pace of 43%. Furthermore, bean commitments stand at 37.284 million metric tons, which is 12% higher than last year and aligns with 75% of the USDA’s projection, indicating a steady trend.
Additional Data Reports and Crop Updates
NOPA reports are expected to release updated figures on Monday, with projections estimating the crushing of 196.713 million bushels of soybeans in November and stocks at around 1.123 billion pounds. Meanwhile, the Buenos Aires Grain Exchange indicates that the Argentine soybean crop is currently 64.7% planted, a rate consistent with historical averages.
Closing Prices for Soybeans
Jan 25 Soybeans closed down 7 1/2 cents at $9.88 1/4.
Nearby Cash was recorded at $9.39 3/4, down 7 1/2 cents.
Mar 25 Soybeans ended at $9.95, down 8 1/4 cents.
Jul 25 Soybeans finished at $10.16, a decrease of 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 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.
