Soybean Prices Plummet as Market Faces Decline
On Friday, soybean prices are experiencing a sharp decline, with contracts dropping by 20 to 25 cents by midday. CmdtyView’s national front-month Cash Bean price has seen a decrease of 23 1/2 cents, bringing it to $9.32 1/2. Additionally, soymeal futures are down $12.50 per ton, while soy oil futures have fallen by 52 points during the session. Overnight, there were 331 deliveries for January soybeans, with 333 for soymeal and 237 for bean oil.
Weak Export Sales Impact Soybean Market
The weekly Export Sales report revealed a marketing year (MY) low of 484,679 metric tons (MT) for 2024/25 soybeans booked for the week ending December 26. This number was below traders’ estimates of 0.5 to 1.2 million MT. Notably, this represents the lowest sales recorded during the holiday week. China accounted for the purchase of 617,700 MT, with a notable switch of 316,000 MT from unknown origins, which experienced total net reductions of 667,300 MT.
Meal and Oil Sales Perform in Mixed Ranges
In terms of meal sales, the report showed 203,814 MT, falling within the estimates of 150,000 to 400,000 MT. Meanwhile, bean oil bookings were at the high end of expectations, totaling 38,147 MT, which was within the forecast range of 5,000 to 40,000 MT.
Crushing Stats Show Variability in Production
The monthly Fats & Oils report indicated that 210 million bushels (mbu) of soybeans were crushed in November, slightly above the estimated 207.2 mbu. This figure represents a decrease of 2.66% from the October all-time high but is up by 4.97% compared to November 2023, marking another monthly record. Ending soy oil stocks were calculated at 1.612 billion pounds at the end of November, surpassing prior estimates.
Current Soybean Prices
Jan 25 Soybeans: $9.79, down 20 1/2 cents
Nearby Cash: $9.32 1/2, down 23 1/2 cents
Mar 25 Soybeans: $9.88 1/2, down 23 1/2 cents
Jul 25 Soybeans: $10.12 1/2, down 25 1/4 cents
On the date of publication,
Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
