Soybean Market Experiences Significant Rallies Driven by Bean Oil Gains
The soybean market made notable gains on Tuesday, largely propelled by an increase in bean oil prices. Contracts closed up by 19 to 22 cents. According to CmdtyView, the national front month cash bean price fell by 21 3/4 cents to $9.79. In the soymeal sector, futures presented mixed results, ranging from a 10-cent increase to a 70-cent decline per ton. Conversely, soy oil futures surged between 124 and 255 points by the end of trading.
This buoyancy in bean oil results from an anticipated meeting between a coalition of biofuel industry representatives and the Environmental Protection Agency (EPA). At this meeting, the coalition is expected to advocate for raising biodiesel blending mandates to between 5.5 and 5.75 billion gallons, compared to the current mandate of 3.35 billion gallons.
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In related news, the latest monthly Fat & Oils report, released this afternoon, indicated that 189.01 million bushels of soybeans were crushed in February. This figure slightly exceeded analysts’ expectations, although it reflected a decline of 2.28% compared to the total for February of last year. Additionally, this figure is 11.07% lower than January’s crushing total. Bean oil stocks were reported at 1.924 billion pounds.
StoneX revised its 2024/25 Brazilian soybean crop estimate down by 0.8 million metric tons (MMT) to 167.54 MMT. In contrast, the USDA maintains an estimate of 169 MMT. Furthermore, Brazil’s soybean exports for March are projected at 16.09 MMT, which marks a 0.53 MMT increase from the previous week, as reported by ANEC.
May 25 Soybeans closed at $10.34 1/4, an increase of 19 1/2 cents.
Nearby Cash was recorded at $9.79, rising by 21 3/4 cents.
Jul 25 Soybeans settled at $10.49 1/4, up 21 cents.
Nov 25 Soybeans closed at $10.39 1/4, gaining 20 cents.
New Crop Cash was priced at $9.78 3/4, a rise of 22 3/4 cents.
On the date of publication, Austin Schroeder did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are solely for informational purposes. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
