Beans Gaining 1% in Tuesday AM Trade

Soybeans are starting out the week with double digit gains of as much as 1.07% after a market holiday on Monday. Beans firmed up with 7 ¼ to 10 ¼ cent gains on Friday. Preliminary open interest showed net new buying interest, rising 9,541 contracts on Friday. Futures were still down by 11 ¼ cents for the week. Soymeal futures also firmed up, closing Friday $5.40 to $6.10 stronger. Soy oil futures closed the day with 41 to 48 point losses, leading the March contract to a net 167 point loss for the week. 

Dalian Soybean Prices  in China gapped lower and pushed to 55 to 77 yuan/MT (~29 c/bu) losses on Monday, following their Lunar New Year break, while the U.S. markets were closed for President’s Day. The March No.1 contract settled at 4,688 yuan (~$17.74/bu), while the No.2 import quality was 3,675 yuan (~$13.90/bu). 

The weekly CoT data showed managed money spec traders were adding positions in beans during the week that ended 2/13. The new selling offset the new buyers by 4.2k contracts on a 13.6k contract OI boost. That pushed the group’s net short to 134,500 contracts. The commercial bean hedgers reduced their net long by 2.8k contracts to 35,918 contracts during the week. CFTC had spec traders extending their net short in soymeal via net new selling, now to 27,592 contracts. The funds were closing shorts and adding new longs in soybean oil during the week that ended 2/13, that left them on an 8.8k contract weaker net short of 35,440 contracts. 

Mar 24 Soybeans  closed at $11.72 1/4, up by 10 cents, currently up 13 cents

May 24 Soybeans  closed at $11.76 1/4, up by 10 1/4 cents, currently up 11 1/2 cents

Jul 24 Soybeans  closed at $11.84 3/4, up by 9 1/2 cents, currently up 11 cents

Nov 24 Soybeans  closed at $11.48 1/2, up by 7 3/4 cents, currently up 9 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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