Soybean Market Outlook: Strong Year-End Performance Amid Anticipated Rain in Argentina
Soybean Prices Surge on New Year’s Eve
The soybean market is set for an impactful start at 9:30 am CST this morning. As 2024 concluded, soybeans exhibited a remarkable rally, with contracts rising by 14 1/2 to 19 1/4 cents on New Year’s Eve. A total of 380 deliveries were noted against January soybean futures that day. According to CmdtyView, the national front month Cash Bean price increased by 17 cents, reaching $9.49 1/2. Soymeal futures also saw gains, climbing by $4.60 to $5.40 per ton, while Soy Oil futures rose by 6 to 14 points. Additionally, 648 deliveries were issued against January bean meal, alongside 192 for bean oil.
Weather Influences Market Conditions
Looking ahead, rains are expected to penetrate the eastern and central regions of Argentina within the next 8 to 14 days. However, the northeastern part of the country and Southern Brazil are forecast to remain dry.
Reports on Export Sales and Soybean Crushing
The weekly Export Sales report has been rescheduled for Friday morning. This afternoon, the monthly Fats & Oils report will be released, with analysts predicting 207.2 million bushels of soybeans crushed during November. Furthermore, soy oil stocks are projected to total 1.478 billion pounds at the end of November.
Record Biofuel Production Levels
Monthly EIA data revealed a significant 1.227 billion gallons of bean oil used in biofuel production in October, marking the highest production since June and the third highest recorded for any month in history.
Current Soybean Futures Prices
For January 25, Soybeans closed at $9.98 1/4, up 16 1/4 cents.
The Nearby Cash price stood at $9.49 1/2, gaining 17 cents.
March 25 Soybeans closed at $10.10 1/2, up 18 3/4 cents.
July 25 Soybeans closed at $10.34 3/4, marking an increase of 19 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 those of the author and do not necessarily reflect those of Nasdaq, Inc.
