Beans Fractionally Weaker into Day Session
The May contract traded from -4 to +4 cents overnight, as the soybean futures now sit fractionally weaker into the day trade. Soy futures dropped back on Tuesday with beans 1 ½ to 6 ¼ cents lower. The Nov contract was a nickel off the session low, and stayed a net 4 ½ cents higher for the week’s move. The new crop soy/corn ratio was still 2.492 at the settle – which is below the peak but still in +bean acre territory. Soymeal futures closed the session a percent weaker with $2.50 to $4 losses. Soy Oil futures tried staying firm on the day, but faded into the close for 11 to 14 point losses across the front months.
Soy deliveries from the CME for 3/5 were 134 contracts of beans, none for meal, and 19 for BO. The March bean deliveries were issued by Marex and stopped by Bunge for a cumulative total of 1,566. The oldest remaining long was marked at 2/28.
A pre-report survey showed the average trade guess for soybean carryout at 318.8 mbu, which would be 3.8 mbu looser if realized on Friday. The full range of estimates is from 22 mbu tighter to 40 mbu looser. Traders are also looking for USDA to cut Brazilian soy production by 3.2 MMT in the monthly WASDE, with a 1.3 MMT tighter carryout.
Brazil’s soybean harvest via AgRural reached 48% finished, which is still 5% points ahead of last year’s pace.
Yesterday, USDA announced a large private export sale for 126k MT of soymeal to unknown. Most of the purchase was for new crop delivery, though 30k MT is for 23/24.
Mar 24 Soybeans closed at $11.40 3/4, down 6 1/4 cents, currently down 6 1/4 cents
Nearby Cash was $10.90, down 5 7/8 cents,
May 24 Soybeans closed at $11.49, down 6 cents, currently down 1/2 cent
Jul 24 Soybeans closed at $11.59, down 6 1/4 cents, currently down 1/4 cent
Nov 24 Soybeans closed at $11.44 1/4, down 2 cents, currently UNCH
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.
