Double Digit Losses for Soybeans

Front month beans are trading 11 ½ to 16 ½ cents in the red pushing the March contract to new LoC lows. New crop beans are firmer with 4 to 6 ½ cent losses so far. The March/Nov spread has tightened to just 1 ¾ cents. Soymeal futures are currently down by $2.90 to $3.40. Soy oil futures are 38 points weaker for midday.

Weekly soybean bookings were a new marketing year low of just 55,919 MT. Traders were looking to see at least 300k MT sold for the week of 2/15. Total commitments for the season now trail last year’s pace by 20%. Meal sales came in at 202k MT for the week, which was inline with estimates and near last week’s sale. The weekly report also had 5k MT of soy oil sales. 

The Rosario Grain Exchange lowered their Argentine production forecast 2.5 MMT to 49.5 MMT. That puts them below the February USDA forecast of 50 MMT.  The BA Grain Exchange left their estimate UNCH at 52.5 MMT. They showed improvement in crop condition, with2% of the previous poor/very poor beans now rated fair.

Mar 24 Soybeans  are at $11.32, down 15 3/4 cents,

Nearby Cash   is at $10.80 1/2, down 15 3/4 cents,

May 24 Soybeans  are at $11.39 3/4, down 12 3/4 cents,

Jul 24 Soybeans  are at $11.49 3/4, down 11 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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