Beans Weaker into Monday

Soybeans are down by 5 ½ to 7 cents so far in early Monday market activity. Overnight action left soymeal $4 to $5/ton weaker, though soy oil is up by 27 points this morning. The soybean market finished Friday with 13 to 20 cent gains on the day. That left May 32 ¾ cents higher for the week’s move. Soymeal futures finished the session with $7 gains for the day. Soy Oil futures closed with 9 to 12 point losses. 

Open interest data from report day showed net short covering for soybeans with 3.9k fewer contracts open at the end of the day. CME data had 32k new options added on Friday, a 5.2% single day increase to the total. Calls were slightly favored, with +19k, though the put/call ratio still favors puts 1.125:1. 

CME confirmed 60 March bean deliveries for a running total of 1,671 contracts. Deliveries against March meal and oil were 94 and 64 contracts respectively. 

CFTC reported spec funds were adding shorts in soybeans during the week that ended 3/5. That extended their net short to 172k contracts. Commercial soybean hedgers also grew their net long during the week, although via short covering. 

USDA’s monthly update had no changes for domestic soybean supply nor demand. The cash average price remained at $12.65. Soy oil’s cash average price was 2 cents weaker at 49 cents/lb. 

Stats Canada is expected to release a planting intentions report this morning for 2024. Farmer survey responses to a Reuters survey for canola indicated 21.6 million acres, down slightly from 22.08 last year. Soybean intentions were very close to last year, at 5.6 million acres. 

Mar 24 Soybeans  closed at $11.70 1/2, up 13 1/2 cents, currently up 13 1/2 cents

Nearby Cash   was $11.25 1/2, up 17 1/2 cents,

May 24 Soybeans  closed at $11.84, up 17 3/4 cents, currently down 7 1/4 cents

Jul 24 Soybeans  closed at $11.95 1/2, up 19 1/2 cents, currently down 7 3/4 cents

Nov 24 Soybeans  closed at $11.73 3/4, up 20 cents, currently down 6 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.

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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