Midday Soybean Prices Rise Despite Escalating Trade Tensions
Soybeans are experiencing midday gains, with contracts seeing an increase of 2 to 6 cents. CmdtyView’s national front month Cash Bean price has risen by 3 cents to $9.41. In the meantime, soymeal futures are up $3.70 per ton, while soy oil futures have decreased by 35 points.
The recent escalation in trade tensions is significant, as the new 50% tariffs on China took effect overnight, raising the total tariff on all Chinese goods to 104%. In retaliation, China has also enacted a 50% increase on U.S. goods, leading to a new total of 84% that will be implemented this Thursday.
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This morning, the USDA reported a private export sale of 198,000 metric tons (MT) of soybeans to unknown destinations. Analysts predict that soybean sales for the week of April 3, 2024/25 will range between 200,000 and 700,000 MT, with the Export Sales report scheduled for release on Thursday. Expectations for new crop sales are between 0 and 50,000 MT. Additionally, soybean meal sales are projected between 75,000 and 470,000 MT, while bean oil sales are expected to be between 5,000 and 37,000 MT.
On Thursday, the USDA will release updates to the U.S. and world balance sheets through the monthly WASDE report. A Reuters survey anticipates that U.S. carryout stocks will be reported at 379 million bushels (mbu), down slightly from 380 mbu in last month’s report. Meanwhile, changes in South America are expected to be minimal, with Argentina forecasted to decrease by 0.21 MMT to 48.79 MMT, and Brazil’s estimates expected to increase by 0.11 MMT to 169.11 MMT.
May 25 Soybeans: $9.95 1/2, up 2 3/4 cents
Nearby Cash: $9.41, up 3 cents
Jul 25 Soybeans: $10.07 1/2, up 3 1/2 cents
Nov 25 Soybeans: $9.83, up 5 1/4 cents
New Crop Cash: $9.22 3/4, up 5 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 are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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