Soybean Market Fluctuates Amid Mixed Fortunes
Early on Monday, soybean contracts are trading 1 to 2 cents lower. After experiencing midweek losses, the soybean market rebounded significantly on Thursday and Friday, with prices rising between 7 and 13 cents. However, January contracts remain down 13 ¾ cents for the week. CmdtyView’s national front month Cash Bean price increased by 11 1/4 cents to reach $9.24 ¾. In the soymeal sector, futures climbed by $6.60 to $11.20 per ton, with January contracts rallying $8.30 for the week. On the other hand, Soy Oil futures dropped by 8 to 54 points during this session, following a 313-point loss from the previous week.
Weather Patterns and Predictions
Weather forecasts point to limited rainfall expected in most of Argentina over the next 8 to 14 days. Light showers will occur in the western part of the country during the upcoming week, while Brazil is anticipated to receive normal levels of rainfall.
CFTC Report Shows Significant Changes
According to the latest Commitment of Traders report from the CFTC, speculators increased their net long positions in soybean futures and options by 17,932 contracts, bringing their total net position to 76,252 contracts as of December 17. Meanwhile, the soybean meal sector witnessed speculators reach a record net short position of 88,971 contracts as of Tuesday.
USDA Export Sales Report
The USDA’s Export Sales report released on Thursday revealed that total marketing year shipments have achieved 25.173 million metric tons (MMT), marking a 22% increase compared to last year and the highest level in four years. This amount represents 51% of the USDA’s total estimated shipment forecast of 1.825 billion bushels (bbu), surpassing the average pace of 47%. Additionally, bean commitments stand at 38.708 MMT, which is 10% above last year and 78% of the USDA projection, exceeding the standard pace by 1 percentage point.
Market Prices Overview
As for specific prices, Jan 25 Soybeans closed at $9.74 1/2, up 11 1/2 cents, although they are currently down 1 1/4 cents. Nearby Cash registered at $9.24 3/4, up 11 1/4 cents.
Furthermore, Mar 25 Soybeans concluded at $9.79 1/4, increasing by 12 3/4 cents but showing a current loss of 1 1/2 cents. Jul 25 Soybeans also posted a closing price of $9.98, up 13 cents, currently down 1 1/4 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 are solely for informational purposes. For more information, please view 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.
