Soybean Prices Decline Amid Market Pressures and USDA Reports
Soybeans faced substantial pressure during Thursday’s trading session, with contracts closing down between 25 to 28 cents. This decline was heavily influenced by losses in soybean oil. The CmdtyView Cash Bean price fell 25 cents, settling at $10.02. In contrast, soymeal futures rose by $4.40 per ton, while soy oil futures hit the 3-cent limit decline.
Key Influences on the Market
The significant drop in bean oil is attributed to reports suggesting that the Environmental Protection Agency (EPA) submitted a biomass diesel Renewable Volume Obligation (RVO) for review at 4.65 billion gallons. If confirmed, this figure is notably lower than the previously anticipated 5.25 billion gallons proposed by a coalition of biofuel and oil producers.
USDA Export Sales Insights
The USDA’s Export Sales report revealed a total of 282,427 metric tons (MT) of 2024/25 soybean sales for the week of May 8. This amount is on the lower end of analysts’ expectations, which ranged from 200,000 to 500,000 MT. Although this marked a decrease from the prior week, it’s still 6.3% higher than the same week in 2024. Egypt purchased 177,100 MT, while Indonesia bought 83,300 MT. New crop sales also reached 490,261 MT, aligning with the higher end of expectations between 350,000 and 500,000 MT, with Pakistan making a significant purchase of 345,000 MT.
Soybean Meal and Oil Sales
Soybean meal sales exceeded estimates, recording 319,352 MT for the week of May 8, falling within the expected range of 90,000 to 350,000 MT. Of this total, 286,665 MT were allocated for the current marketing year. In contrast, bean oil sales were reported at 14,072 MT, consistent with estimates of 0 to 34,000 MT.
NOPA Crush Data
According to NOPA estimates, U.S. soybean crush among members reached 190.226 million bushels in April, surpassing projections. This figure reflects a slight decline of 2.22% from the previous month but is 12.27% higher compared to last year. Additionally, bean oil stocks were reported at 1.53 billion pounds, above estimates and representing a 1.96% increase from the end of March, although still down 16.64% compared to the same time last year.
Brazil’s Soybean Production Estimate
Brazil’s CONAB has increased its soybean production estimate by 0.47 million metric tons to a total of 168.34 million metric tons.
Market Close Information
Jul 25 Soybeans closed at $10.51 1/4, down 26 1/2 cents.
Nearby Cash was $10.02, down 25 cents.
Aug 25 Soybeans closed at $10.47 1/4, down 27 1/4 cents.
Jan 26 Soybeans closed at $10.46 3/4, down 25 1/4 cents.
New Crop Cash was $9.72 0/1, down 26 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.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
