Soybean Market Sees Gains Amid Trade Talks and Weather Patterns
The soybean market is enjoying gains of 13 to 23 cents this Tuesday, buoyed by weather conditions in South America and easing trade negotiations. CmdtyView’s national front month Cash Bean price has risen by 22 ¼ cents to reach $9.96. Soymeal futures are also on the uptick, increasing by $11.70 per ton. In contrast, Soy Oil futures have dipped by 20 points today. A return to dryness is forecasted for parts of Argentina over the next two weeks, although the upcoming week may see sporadic rainfall totals.
Export Inspections Report Highlight
The USDA’s Export Inspections report revealed that 973,145 MT (35.76 million bushels) of soybeans were shipped during the week of January 16. This represents a 17.9% decrease from the same week last year and a 28.3% decline compared to the previous week. The largest importer was China, which received 494,617 MT, followed by Mexico with 90,784 MT. Year-to-date sales have reached 32.298 MMT (1.187 billion bushels), maintaining a 20.6% increase over the same timeframe last year.
Changing Trade Policy
On Monday, President Trump indicated a softer stance on tariffs, postponing their implementation to review existing trade agreements with China, Canada, and Mexico.
Market Sentiment Among Traders
The CFTC Commitment of Traders data showed a significant shift as speculative traders in soybean futures and options switched to a net long position of 34,833 contracts as of January 14. This marked a notable increase of 63,445 contracts in that week—the first net long position seen in over a year. Meanwhile, commercial positions revealed a net short of 120,158 contracts, an uptick of 66,450 contracts from the previous week.
Brazilian Soybean Crop Updates
AgRural reports that 1.7% of the Brazilian soybean crop was harvested as of last Thursday. Additionally, Abiove has raised its Brazilian soybean crop estimate to 171.7 MMT, an improvement from the prior estimate of 168.7 MMT.
Mar 25 Soybeans are priced at $10.56 1/2, reflecting an increase of 22 1/2 cents.
Nearby Cash sits at $9.96, up 22 1/4 cents.
May 25 Soybeans are trading at $10.66 3/4, marking a rise of 22 cents.
Nov 25 Soybeans have reached $10.42 1/4, which signifies an escalation of 14 1/2 cents.
New Crop Cash is currently listed at $9.76 3/4, up by 13 3/4 cents.
On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, in the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please consult 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.
