Soybean Prices Fall Amid Tightening Global Supplies
Market Update: The soybean market experienced declines on Tuesday, with significant losses in front month contracts.
Soybean prices dipped on Tuesday, despite reports indicating tighter global supplies, according to USDA data. Contracts closed with losses ranging from 2 to 6 cents, primarily affecting the front months. CmdtyView’s national front month Cash Bean price dropped by 6 cents, settling at $9.82 3/4. Soymeal futures also fell, with a decrease of $3.60 per ton, as traders reacted to the recent crop reduction in Argentina. However, soy oil futures managed a small gain, rising by 39 points, bolstered by higher crude oil prices.
The monthly WASDE report released today showed no changes in the soybean supply and demand figures. Ending stocks for the 2024/25 crop year remain at 380 million bushels. The USDA’s cash average price for soybeans decreased by 10 cents, now at $10.10.
In South America, production estimates faced revisions. While Brazil’s production remained steady at 169 million metric tons (MMT), Argentina’s forecast was cut by 3 MMT to 49 MMT, due to ongoing heat and dry conditions. Consequently, world soybean stocks were reduced by 4.03 MMT, down to 124.34 MMT, largely influenced by Argentina’s adjustments.
According to ANEC, Brazil’s exports for February reached 10.1 MMT, which is an increase of 330,000 MT from prior estimates. AgResource’s crop forecasts pointed to a slightly higher Brazilian bean crop, now estimated at 172.28 MMT. Conversely, Patria Agronegocios revised their prediction down by 1.07 MMT, now forecasting 165.87 MMT.
Here’s a snapshot of current soy prices:
- Mar 25 Soybeans: closed at $10.43 1/2, down 6 cents
- Nearby Cash: $9.82 3/4, down 6 cents
- May 25 Soybeans: closed at $10.60 1/4, down 5 1/4 cents
- Nov 25 Soybeans: closed at $10.55 1/2, down 2 cents
- New Crop Cash: $9.91 1/4, down 2 cents
At the time of publication, Austin Schroeder did not have any direct or indirect positions in the securities mentioned. All information in this article is provided for informational purposes only. For further details, please refer to the Barchart Disclosure Policy here.
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