Soybeans Close Higher Despite Initial Retreat
Despite retreating from initial gains, soybeans closed on a positive note on Thursday. The futures market saw an increase ranging from 1 ¾ to 4 cents across the front months, with May experiencing a range of 22 ¾ cents for the day. Additionally, soymeal futures concluded the Thursday session with an uptick of $1.80 to $2.20, while nearby Soy Oil futures, though weaker, closed higher than the day’s lows by 15 to 21 points.
USDA’s Export Sales Data and Market Performance
USDA’s weekly Export Sales data showed 494k MT of soybeans booked in the week that ended on 3/14. This figure was in line with estimates and represented a 31% increase from the previous week. Total commitments now stand at 40.16 MMT, which is 19% behind last year’s pace.
Regarding this week’s soymeal bookings, 243k MT were recorded, bringing total old crop commitments to 10.1 MMT. Furthermore, BO bookings decreased to 1.9k MT for the week.
Global Projections and Exports
In a report, USDA’s attache presented preliminary 24/25 estimates for Chinese soybean imports at 103 MMT, a slight decline from the 103-105 MMT anticipated for the old crop. Meanwhile, Brazilian freight sources anticipate March soybean exports to reach 14 MMT (514 million bushels). This achievement would mark a 6% increase from last March and set a new record for the month. To put this into perspective, US soybean crush for the entire Sep-Nov quarter was 576 million bushels.
May 24 Soybeans closed at $12.12, up 2 1/2 cents; Nearby Cash was $11.55 5/8, up 2 1/2 cents; Jul 24 Soybeans finished at $12.25 3/4, up 2 1/2 cents; and Nov 24 Soybeans closed at $12.04 1/4, experiencing an increase of 4 cents. It is remarkable to note the positive momentum across these markets.
On the date of publication, Alan Brugler 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.
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