Soybean Prices Surge Following USDA Reports and Export Boost
Soybean prices climbed on Monday, continuing the momentum from Friday’s USDA reports. Most soybean contracts gained between 20 to 28 cents. CmdtyView reported the national front month Cash Bean price up 26 1/4 cents, now sitting at $9.94 1/2. Additionally, soymeal futures increased by $9.30 per ton, while soy oil futures rose 34 points during the session. The January futures are set to expire on Tuesday.
Export Sales to China Offer Positive Market Indicators
This morning, the USDA announced a private export sale of 198,000 MT of soybeans to China, scheduled for delivery in the 2024/25 period.
Increased Export Inspections Highlight Strong Demand
The weekly Export Inspections report revealed that 1.35 million metric tons (MMT), or 49.61 million bushels (mbu), of soybeans were shipped in the week ending January 9. This represented a 5.5% increase from the same week last year and a 4.2% increase from the prior week. China was the largest recipient, receiving 542,868 MT, followed by Bangladesh with 179,167 MT. Other notable shipments included 77,593 MT to Indonesia, 71,153 MT to Italy, and 70,823 MT to Turkey. So far in the marketing year, total shipments have reached 31.317 MMT, equating to 1.151 billion bushels, which is a 22.4% improvement compared to the same period last year.
Changes in Trader Positions Reflect Market Sentiment
In the latest delayed CFTC Commitment of Traders report, managed money reduced their net short position in soybean futures and options by 13,835 contracts up to January 7, bringing their net short to 28,612 contracts. Conversely, commercials added 21,307 contracts, raising their net short to 53,708 contracts.
Brazil’s Soybean Harvest Progressing Amidst Forecasted Growth
According to AgRural, Brazil has harvested 0.3% of its soybean crop as of last Thursday. AgResource estimates Brazil’s soybean production to be 172.07 MMT, an increase of 2 MMT from previous projections.
October Chinese Imports Show Stability in Demand
China’s soybean imports in October reached 7.94 MMT, reflecting a slight 0.2% decline from October of the previous year. Overall, total imports for 2024 have hit 105.03 MMT, marking a 6.5% rise year-over-year.
Closing Market Prices
January 25 Soybeans closed at $10.41 1/2, up 28 cents.
Nearby Cash was $9.94 1/2, up 26 1/4 cents.
March 25 Soybeans closed at $10.53, up 27 3/4 cents.
July 25 Soybeans closed at $10.78, up 28 1/4 cents.
On the date of publication, Austin Schroeder did not hold any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
