Soybean trade has Wednesday morning price action 6 to 7 cents higher so far. They ended the Tuesday session with contracts mixed, as nearby contracts were up ¼ to 5 ½ cents, as back months were ¾ to 2 ¾ cents lower. Soymeal was up $1.30 to $3.20/ton in the front months, with deferred contracts down $1.60 to $6.10. Soy Oil continued to rally on Tuesday, with futures up 79 to 110 points.
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.
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.
State by state detail shows soybean conditions in the ECB were improving last week, with IL up 6 points on the Brugler500 index and IN 8 points higher. MO and SD were both up 3 points, as IA was down 3 points, with NE 2 points lower and MN losing 4 points.
USDA’s attaché in Brazil estimates the country’s soybean crop at 150 MMT in their latest release, compared to the official WAOB projection of 153 MMT. They also peg the 24/25 crop at 160 MMT, 9 MMT below the official USDA number, with planted acreage nearly a 2.5 million acre spread between the two.
Jul 24 Soybeans closed at $11.65, up 5 1/2 cents, currently up 6 ¼ cents
Nearby Cash was $11.13 1/2, up 5 1/4 cents,
Aug 24 Soybeans closed at $11.50 1/4, up 4 1/4 cents, currently up 6 ¾ cents
Nov 24 Soybeans closed at $11.13, up 2 cents, currently up 6 ¼ cents
New Crop Cash was $10.56 3/8, down 1 1/4 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.
