Soybean Prices Surge as Year-End Approaches
Market Overview: Strong Deliveries and Export Numbers
Soybeans are experiencing a comeback as the year ends, with contracts rising by 8 to 11 cents. There were 109 deliveries on January soybean futures during the First Notice Day (FND). CmdtyView’s national front month cash bean price is currently $9.39 1/2, which is an increase of 7 ¾ cents. Soymeal futures have also seen a rise of $2.10 per ton, with 1,116 deliveries on January bean meal reported on FND. For soybean oil, futures are up by 7 points, backed by 425 deliveries against January bean oil overnight, all from a JP Morgan customer. Note that the market will be closed on Wednesday, with a reopening scheduled for 8:30 am CST on Thursday.
Export Figures for Soybeans Reflect Growing Demand
The weekly Export Inspections report showed soybean exports reached 1.57 million metric tons (MMT) (57.67 million bushels) for the week ending December 26. This figure represents an impressive gain of 61.7% compared to the same week in 2024, although it reflects an 11.5% decline from the previous week. China remained the top destination, importing 751,115 MT, while Egypt received 219,120 MT and Turkey got 136,789 MT. So far this marketing year, shipments have totaled 28.596 MMT (1.05 billion bushels), which is 22.9% higher than the same timeframe in the 2023/24 marketing year.
Biofuel Demand Pushes Bean Oil Usage Higher
Data from the EIA indicated that in October, 1.227 billion gallons of bean oil were utilized for biofuel production. This amount is the highest since June and ranks as the third highest for any month in recorded history.
Traders Adjust Positions in Soybean Futures
According to the CFTC, managed money reduced its net short position in soybean futures and options by 8,369 contracts as of December 24, bringing the total to 67,883 contracts. Conversely, in soybean meal, speculators increased their net short position by 7,400 contracts, reaching a total of 96,371 contracts.
Current Soybean Prices
Jan 25 Soybeans are priced at $9.90 1/2, showing an increase of 8 1/2 cents.
Nearby Cash stands at $9.39 1/2, rising 7 3/4 cents.
Mar 25 Soybeans are being traded at $10.01 3/4, up 10 cents.
Jul 25 Soybeans are valued at $10.25 1/4, an increase of 9 1/2 cents.
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions 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 here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
