Market Movement:
Soy oil prices experienced a downtrend on Thursday, exerting downward pressure on soybean prices as well. Front month soybeans have slipped approximately 5 cents from their session lows, with losses ranging from 4 to 7 cents. Concurrently, nearby Soy Oil futures are down by 80 points at midday, while Soymeal is trading $1.50 to $2.20 higher.
February Soybean Shipments:
Official soy shipments for February were reported at 193.4 mbu, showing a decline from the 219 mbu recorded in January. Despite this, the figure remained in line with February ’23 shipments. The season’s Census official export figure stood at 1.3 bbu through February.
Recent Developments:
The USDA announced a significant export sale of 152,404 MT of soybeans to Mexico earlier today. However, the Weekly Exports Sales data revealed that only 194,220 MT of soybeans were booked in the week of March 29, falling below the trade estimates of at least 200k MT. Furthermore, new crop sales were at 0, with Soymeal sales totaling 234,755 MT, including 202,170 MT for the current marketing year.
Production Projections:
StoneX revised their estimate for Brazilian soybean production downward, citing lower yields in MGDS, Sao Paulo, and Parana. The new output estimate now stands at 150.8 MMT.
Current Prices:
As of now, May ’24 Soybeans are valued at $11.75 1/2, down 6 3/4 cents, while Nearby Cash is trading at $11.21, marking a decrease of 6 7/8 cents. Jul ’24 Soybeans are at $11.88 1/4, down 7 cents, and Nov ’24 Soybeans stand at $11.78 1/2, down 6 1/4 cents.
Disclaimer: On the date of publication, Alan Brugler had no positions directly or indirectly in any of the securities mentioned in this article. The information provided in this article is solely for informational purposes.
Note: The views and opinions expressed in this article represent the author’s perspective and do not necessarily align with those of Nasdaq, Inc.
