Beans Fading through Monday

Soybeans are ~5 cents off their lows at midday but still 2 to 7 cents in the red. The May contract was above the $12 mark at the session’s high for an 18c trading range so far starting the week. Soymeal futures are off their lows for midday but still 10 to 30 cents in the red. Soy Oil futures are working 40 to 50 points lower through midday. CME’s OI data showed a 9.9k contract increase for soybean futures on Friday. Options open interest also increased on Friday with 9.8k contracts added including 5.3k new calls and 3.5k new puts.

Weekly CFTC data showed managed money traders were short covering during the week that ended 3/12. The 13k fewer shorts in play, alongside the 3.8k new longs, reduced their net short to 155k contracts. Commercial soybean hedgers were adding positions during the week for a 53k contract net long as of the Tuesday settle.

USDA reported 686,181 MT of soybeans were exported during the week that ended 3/14. That was a decline from 784k MT last week and from 720k MT during the same week last year. USDA added late reported soybean exports to past weeks which left the season’s total at 35.77 MMT. That compares to 44.06 MMT at this point last year.

NOPA members reported crushing 186.2 mbu in February which was more than expected and a new record for the month. It was also up 0.2% from January. Soy oil stocks expanded to 1.69 billion lbs compared to 1.51 billion last month. 

May 24 Soybeans  are at $11.94 1/4, down 4 cents,

Nearby Cash   is at $11.38 7/8, down 4 cents,

Jul 24 Soybeans  are at $12.09, down 3 1/2 cents,

Nov 24 Soybeans  are at $11.86 1/2, down 4 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.