Soybean Market Sees Gains Amid Weather Uncertainties
The soybean market finished Thursday with contract prices rising by 12 ¼ to 17 ½ cents. CmdtyView reported the national front month Cash Bean price at $9.37, reflecting a 13 cent increase. Soymeal futures were the stars of the session, climbing between $9.60 to $13.30 per ton, largely due to concerns over dry weather in Argentina. Unfortunately, Soy Oil futures ended the day lower, dropping by 25 to 49 points.
Weather Forecast and Its Impact on Supply
Looking ahead, forecasts for the upcoming week suggest near-normal rainfall for most of Brazil. However, the southern regions and Argentina will likely experience increasing dryness. As the first week of January approaches, the extended dry conditions are expected to continue, prompting meal specifications to cover shorts as they prepare for the drier weather.
Upcoming Export Sales Report and Estimates
The weekly Export Sales report is due on Friday because of the holiday. Analysts project sales of 1 to 1.8 million metric tons (MMT) of soybeans for the 2024/25 season, with an additional 70,000 to 125,000 MT earmarked for 2025/26. Soybean meal sales are estimated at 200,000 to 450,000 MT, alongside 5,000 to 15,000 MT of soybean oil.
Canola Crush Data and Brazil’s Export Estimates
Stats Canada released its November canola crush data, indicating a total of 1.019 MMT, which is a 12.2% increase from last year. Brazilian soybean exports for December are projected to reach 1.62 MMT, consistent with last week’s expectations, as reported by ANEC.
Closing Prices for Soybeans
Jan 25 Soybeans closed at $9.88, gaining 12 ¾ cents.
Nearby Cash was also up, closing at $9.37, an increase of 13 cents.
Mar 25 Soybeans finished at $9.97 ¼, rising 16 cents.
Jul 25 Soybeans closed at $10.18 ½, an increase of 17 ¼ cents.
On the date of publication, Austin Schroeder did not hold any direct or indirect positions in the securities mentioned in this article. All information and data in this article are provided solely for informational purposes. For more details, please see 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.
