Soybean Market Experiences Minor Setbacks Amid New Export Sales
The soybean market is facing losses between 1 to 5 cents on Tuesday as January futures near expiration. CmdtyView reports a national front month Cash Bean price decline of 1 3/4 cents, bringing it down to $9.92 1/4. Soymeal futures are reverting down $2.20 per ton, while Soy Oil futures have risen by 22 points. Notably, there were 112 deliveries issued against January soybeans overnight, along with 6 for January meal and 59 for bean oil.
In a positive development, the USDA announced a private export sale of 198,000 metric tons of beans to China, scheduled for shipment in 2024/25.
Recent CFTC Commitment of Traders data revealed that managed money reduced their net short position in soybean futures and options by 13,835 contracts during the week of January 7. Their net short position now stands at 28,612 contracts. Conversely, commercials added 21,307 contracts to reach a total net short position of 53,708 contracts.
Looking ahead, Wednesday’s NOPA crush report for December is anticipated to show approximately 205.498 million bushels of soybeans crushed. If this projection is accurate, it would mark a 6.4% increase from November and a 5.2% increase compared to last year.
In Brazil, the soybean crop forecast has been adjusted to 166.32 million metric tons according to CONAB, reflecting a slight increase of 0.11 million metric tons from last month.
Jan 25 Soybeans are priced at $10.47 1/2, which is up 6 cents.
Nearby Cash is at $9.92 1/4, down 1 3/4 cents.
Mar 25 Soybeans are trading at $10.51 1/4, down 1 3/4 cents.
Jul 25 Soybeans are priced at $10.75 1/2, down 2 1/2 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
