Soybean trade is pushing higher on Wednesday, with contracts up 8 to 15 cents. Soymeal is 40 cents/ton in the front months, with Soy Oil up 79 to 159 points on the day. There were again zero deliveries vs. July soy meal and July soybean futures overnight. Soy oil contracts stopped the day before were re-issued, with 121 put out. The oldest soybean long is dated June 7. Wednesday will be the last full trade day of the week with Thursday off for the July 4th holiday, and a hard 8:30 am CDT open on Friday.
USDA reported a private export sale of 110,100 MT of soybeans to unknown destinations this morning, with 55,100 MT for old crop and 55,000 MT for new crop shipment. Estimates are running 200,000 to 600,000 MT for 23/24 sales in Friday’s Export Sales report, with new crop in the middle of 50,000 and 150,000 MT. Soy meal expectations are for 100,000 to 850,000 MT of combined sales for this and the next MY, with bean oil ranging from net reductions of 5,000 to net sales of 25,000 MT.
Indonesia has threatened 200% tariffs on Chinese consumer goods, with possible implications being increase Chinese tariffs on Indonesian goods including palm oil. Some are spinning that as positive for bean oil, either as a substitute veg oil or by reducing used cooking oil imports (which are often palm). Bears suggest if Indonesia can’t sell palm to China it will displace other veg oils in other markets.
Soybean exports totaled 1.41 MMT (51.8 mbu) in May, with the third quarter total at 229 mbu and 1.532 mbu reported for the MY so far. May’s total was down 20.38% from last month but back up 42.94% from a year ago. Soybean meal shipments totaled 1.01 MMT, a 19.63% drop from last month and 6.5% below a year ago. Bean oil exports picked up to the largest level in 22 months at 42,508 MT.
Jul 24 Soybeans are at $11.79 3/4, up 14 3/4 cents,
Nearby Cash is at $11.23 3/4, up 10 1/4 cents,
Aug 24 Soybeans are at $11.60, up 9 3/4 cents,
Nov 24 Soybeans are at $11.23 1/2, up 10 1/2 cents,
New Crop Cash is at $10.67 1/8, up 10 3/4 cents,
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.
