Soybean Prices Surge Following Export Sales and Production Reports
Strong Gains in Soybean Futures as Exports to China Increase
Soybeans experienced a significant rally on Monday, with contracts showing gains between 14 to 18 cents. The soon-to-expire January futures rose by an impressive 21 ¾ cents. According to CmdtyView, the national front month Cash Bean price increased by 17 ½ cents, reaching $9.86 ½. In addition, soymeal futures gained $7.30 per ton, while Soy Oil futures climbed by 26 points. On Friday night, there were 4 deliveries against January beans, 6 for meal, and 35 for bean oil, ahead of the futures expiration on Tuesday.
USDA Reports Strong Export Sales to China
This morning, the USDA announced a private export sale of 198,000 metric tons of soybeans to China, scheduled for shipment in the 2024/25 cycle.
Weekly Export Inspections Show Increase in Shipments
The weekly Export Inspections report revealed that 1.35 million metric tons (49.61 million bushels) of soybeans were shipped during the week of January 9. This figure reflects a 5.5% increase compared to the same week last year and is 4.2% higher than the previous week. China was the largest recipient, receiving 542,868 metric tons, followed by Bangladesh with 179,167 metric tons. Indonesia received 77,593 metric tons, Italy took 71,153 metric tons, and Turkey received 70,823 metric tons. Overall, marketing year shipments now stand at 31.317 million metric tons (1.151 billion bushels), marking a 22.4% rise from this time last year.
Production Report Indicates Lower Yields
On Friday, the USDA’s Crop Production report indicated a drop in soybean yield to 50.7 bushels per acre, down by 1 bushel per acre, with total production decreasing by 95 million bushels. The WASDE report also adjusted the ending stocks projection down by 90 million bushels to 380 million bushels.
Brazil’s Soybean Harvest Begins Slowly
As of last Thursday, Brazil’s soybean harvest was reported at just 0.3% completed, according to AgRural, marking the start of the harvest season.
China’s Soybean Import Trends
In October, China’s soybean imports totaled 7.94 million metric tons, reflecting a slight 0.2% decrease from the same month last year. However, total imports for 2024 reached 105.03 million metric tons, an increase of 6.5% compared to the prior year.
Current Soybean Pricing Update
January 25 Soybeans are priced at $10.35 ¼, up 21 ¾ cents.
Nearby Cash stands at $9.86 ½, up 17 ½ cents.
March 25 Soybeans are currently at $10.43 ½, up 18 ¼ cents.
July 25 Soybeans are listed at $10.68, up 18 ¼ cents.
On the date of publication, Austin Schroeder did not hold any positions, directly or indirectly, 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
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
