Soybean Market Update: Early Declines Recover Slightly
On Tuesday, soybean prices showed signs of recovery after an early drop, with contracts falling only 1 to 4 cents as midday approached. CmdtyView reported the national front month cash bean price down 2 ¾ cents at $9.39 1/4. Soymeal futures decreased by $6.30 per ton, while soy oil futures experienced an increase of 92 points during the session. There were no delivery reports for January soybeans overnight, but 129 contracts were issued for January meal and 16 for January bean oil.
Strong November Exports Highlight Growing Demand
This morning, export data for November was released, indicating soybean shipments reached 9.876 million tons (362.88 million bushels), marking the highest total for the month in three years. The first quarter total now stands at 819 million bushels, the largest single-month export volume since October 2022. Soybean meal exports also hit a record, reaching 1.55 million tons in November, while bean oil shipments, at 58,510 tons, were the highest since April 2022.
Weather Patterns Impacting South America
In terms of weather, Southern Brazil is expected to see precipitation in the 8-14 day forecast, although Argentina will experience only sporadic showers.
Traders Adjust Positions in Soy Products
A recently delayed weekly Commitment of Traders report revealed that managed money cut 25,436 contracts from their net short position in the last week of the year. As of December 31, their net short position was at 42,447 contracts, largely due to short covering. Speculators in soybean meal also reduced their shorts, bringing the previous record net short down by 31,429 contracts to 64,942 contracts.
Current Futures Prices
Jan 25 Soybeans: $9.90 3/4, down 1 3/4 cents
Nearby Cash: $9.39 1/4, down 2 3/4 cents
Mar 25 Soybeans: $9.95, down 2 3/4 cents
Jul 25 Soybeans: $10.17, down 3 1/2 cents
Austin Schroeder did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided in this article are intended for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
