Soybeans Backing Off for Tuesday
Soybeans are starting off Tuesday with a 2 cent giveback. Beans rallied by as much as 2.5% across the front months on Monday, shown as net new buying; +5.5k contracts total via CME data, though Jan lost 7.2k and Mar picked up 11.4k contracts. Jan led the way higher, reducing the carry to March by 1 ¾ cents to 17 ¼. Soymeal futures also rallied by 2%, with gains of as much as $8.80. The meal market remains inverted with a $17.50 discount to Jan and another $8.60 discount to March. Soybean Oil futures were 1.8% higher on Monday. Jan is now a 5 point premium to March.
There have still been zero delivery notices against December meal or bean oil. The oldest longs have been exiting in orderly fashion thus far, with the first up date now 11/28/23 for meal and 11/20/23 for bean oil.
The weekly Export Inspections report had 984k MT (36.17 mbu) of soybean shipments for the week that ended 12/07. That was down from the 1.17 MMT last week and from the 1.88 MMT during the same week last year. The season’s total export trails last year’s pace by 16% with 19.7 MMT (725.4 mbu) shipped.
Safras and Mercado revised their Brazilian soybean production forecast 3.2 MMT lower to 158.2 MMT citing northern dryness. USDA is at 161 MMT.
Jan 24 Soybeans closed at $13.36, up 32 cents, currently down 2 cents
Nearby Cash was $12.81 1/2, up 33 1/8 cents,
Mar 24 Soybeans closed at $13.53 1/4, up 30 1/4 cents, currently down 2 1/4 cents
May 24 Soybeans closed at $13.65, up 27 3/4 cents, currently down 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.
