Beans Fall Double Digits on Wednesday

Front month soybeans ended the midweek session with double digit losses of as much as 1.4%. The November contract was just a penny and a half off the low for the week and is now at a 12 ¼ cent loss for the week. The November contract is at a 20c discount to the Jan contract, and March is a 12c carry from Jan. Soymeal futures ended the session with $0.40 to $1.20 losses. Soybean Oil futures were 50 points weaker on the day. 

USDA reported a 121k MT flash sale of soybeans to China this morning. Private exporters also sold 213k MT of beans to unknown destinations. 

The weekly Crop Progress report had 7% of the soybean crop yet to drop leaves as of 10/8, which is 6 ppts ahead of average. Harvest was reported as 20% points further along for the week, and is now 6% points ahead of the average pace. Bean conditions were 335 on the Brugler500 Index. That was down 4 points for the week led by a 24 point drop for IL. 

Going into Thursday’s report day, traders expect a 0.1 bpa trim to soy yield on average at 50 flat. The full range is from a 0.6 bpa trim to a 0.7 bpa increase relative to the Sep report. On net bean production is expected to drop 10.8 mbu to 4.135 bbu on average, though survey respondents would not be surprised to see production reported between 4.09 bbu and 4.2 bbu. Traders expect USDA to raise carryout by 13 mbu on average to 233 million. 

Nov 23 Soybeans  closed at $12.52 1/2, down 19 cents,

Nearby Cash   was $11.91 1/4, down 18 1/2 cents,

Jan 24 Soybeans  closed at $12.72 1/4, down 17 cents,

Mar 24 Soybeans  closed at $12.85, down 15 1/2 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.