Soybeans are trading with 17 to 30 cents lower to kick off the week, hit hard right out of the box on Sunday night. On Friday gave beans gave back all of the gains in the August contract for last week and most of November’, as contracts fell 28 to 38 ½ cents into the close. Preliminary open interest dropped 22,277 contracts, due almost entirely to the Friday expiration of August options. Product pressure was in play, especially from the Soy Oil futures, which were down 219 points. Soymeal futures were down $1 to $1.40/ton.
The weekly update from CFTC showed the managed money spec funds in soybeans cutting back 22,091 contracts from their previously record net short in soybean futures and options. That stood at 163,569 contracts on July 23 and does not reflect Friday action. Commercials were also backing off a record net long by 31,652 contracts to 49,610 contracts on that date, mainly on longs exiting.
USDA’s Export Sales report shows the total commitments for soybean export at 45.31 MMT, or 98% of USDA’s forecast total. The average pace would be 103% for that week. Accumulated exports for the year are sitting at 91% of USDA’s projection with just a month and a half left in the marketing year as the 5-year average is 92%. Looking ahead to new crop sales, there are 2.9 MMT of forward sales on the books, which is down 30.1% from a year ago and the lowest total for that week in the last 20 years. We are catching up on the 19/20 forward sales from the Trade War and COVID period.
Aug 24 Soybeans closed at $10.77 1/2, down 38 1/2 cents, currently down 29 1/4 cents
Nearby Cash was $10.50, down 39 1/4 cents,
Nov 24 Soybeans closed at $10.48 1/2, down 31 cents, currently down 19 1/2 cents
Jan 25 Soybeans closed at $10.64, down 29 3/4 cents, currently down 18 3/4 cents
New Crop Cash was $10.01 1/4, down 31 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.
