Soybean Market Takes a Downturn as Exports Show Mixed Results

Price Drops Across Contracts Amid Weather Speculations

The soybean market experienced significant selling pressure on Thursday, with contracts falling between 18 to 24 cents by the session’s end. CmdtyView’s national front month Cash Bean price decreased by 23 1/4 cents to $9.60 1/2. In terms of soy meal futures, prices dipped by $6.50 to $7 per ton, while soy oil futures fell by 123 to 128 points. Argentina is expected to experience a dry period over the next week, but the weather outlook shifts to wetter conditions in the 8-14 day range.

This morning, the USDA announced a private export sale of 132,000 metric tons (MT) of soybeans to China for delivery in the 2024/25 season.

Based on the latest Export Sales report, there was a notable rebound in activity following the holiday week, with total sales reaching 569,142 MT for 2024/25 during the week ending January 9. This figure is in line with trade estimates, which ranged from 300,000 to 800,000 MT. Notably, this marks a three-week high and is almost double the previous week’s numbers. Of this total, China emerged as the leading buyer with 213,900 MT, followed by Bangladesh, which purchased 179,200 MT. However, other unknown destinations canceled 648,100 MT, much of which was redirected elsewhere.

Soybean meal sales were recorded at 145,548 MT, falling short of the estimates of 150,000 to 300,000 MT, whereas bean oil bookings reached 57,299 MT, surpassing predictions between 10,000 and 50,000 MT.

The International Grains Council adjusted its world soybean production estimate upwards by 1 MMT, now totaling 84 MMT. This represents an increase of 2 MMT in stocks compared to the previous year, highlighting an 11 MMT rise since last year.

Mar 25 Soybeans closed at $10.19, down 23 3/4 cents.

Nearby Cash was $9.60 1/2, down 23 1/4 cents.

May 25 Soybeans closed at $10.31 1/2, down 23 3/4 cents.

Nov 25 Soybeans closed at $10.20 3/4, down 18 1/2 cents.

New Crop Cash was $9.55 1/2, down 18 cents.

On the date of publication, Austin Schroeder did not possess any positions, either directly or indirectly, in any of the mentioned securities. This article’s information is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.