Soybean Futures Struggle Despite Positive Export News
Market Reaction Remains Tepid
Soybean prices aren’t reacting strongly to the morning’s export announcements or the favorable Export Sales report. Futures fell 12 to 14 cents by midday, hitting near intraday lows. According to CmdtyView, the national front month Cash Bean price dropped 12 1/4 cents to $9.27. Pressure on the products is a significant factor, with Soymeal futures down $2.10 per ton and Soy Oil futures decreasing another 111 points.
Weather Updates in Brazil
Most of Brazil is expecting ongoing rain over the next week, although some areas may see amounts lighter than typical for this time of year.
USDA Export Sales Report Highlights
This morning, the USDA reported a private export sale of 198,000 metric tons (MT) of soybeans to China for the 2024/25 season, along with an additional 135,000 MT to an unspecified buyer. There was also a sale of 133,000 MT of soybean meal to the Philippines.
The weekly Export Sales report indicated soybean sales reached 1.861 million metric tons for 2024/25. This figure surpassed the trade estimate range of 1 to 1.6 million metric tons for the week ending November 14. Notably, this figure is 19.6% higher than the previous week and more than double the same week last year. China was the primary buyer, securing 1.197 million metric tons, while Mexico purchased 169,000 MT and the Netherlands obtained 143,400 MT.
Meal and Oil Sales Lag
Sales figures for soybean meal came in at 275,629 MT, which is at the lower end of the estimated range of 210,000 to 490,000 MT and represents a 9.1% drop from last week. Meanwhile, soybean oil bookings were recorded at 21,947 MT, falling within the 5,000 to 35,000 MT estimate range.
International Grains Council Updates Production Estimates
The International Grains Council has revised its global production estimate downward by 2 million metric tons to a total of 419 million metric tons. Additionally, estimated stocks are down 4 million metric tons to 82 million metric tons due to increased consumption.
Jan 25 Soybeans are priced at $9.78, down 12 1/2 cents.
Nearby Cash sits at $9.27, down 12 1/4 cents.
Mar 25 Soybeans are trading at $9.85 1/2, down 13 3/4 cents.
Jul 25 Soybeans are at $10.11 1/4, down 14 cents.
At the time of publication,
Austin Schroeder
held no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data provided herein are for informational purposes only. For further details, please refer to the Barchart Disclosure Policy
here.
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