Soybeans Rally Double Digits on Bean Oil Strength
Soy Oil futures finished the Tuesday session with triple digit gains of as much as 2.5%. That helped push beans up by 1.2% to 1.4% with double digit gains. The July and August contracts were back above the $12/bu mark at the close. Soymeal futures closed up by $2 to $2.20 across the front months.
Nearby Canadian Canola Prices were $12/MT higher at the close. Futures were just at LoC lows on 2/26.
US Export Inspections data had 706,334 MT of soybean shipments for the week that ended 3/7. Total shipments, at 35 MMT, remain 19.2% behind last year’s pace.
CONAB estimated Brazil’s soybean production at 146.85 MMT, a 2.55 MMT cut and now 8.15 MMT under USDA. Safras and Mercado’s standing estimate is to see 149.1 MMT of soybean production, which has the 54.5 MMT in farmer sales read as 36.6%. At the same point last year farmers were 35.4% sold, though the 5-yr average is to be closer to 50% via Safras data. AgRural estimates Brazilian harvest is 55% complete, slightly ahead of the 53% from last year.
May 24 Soybeans closed at $11.96, up 16 3/4 cents,
Nearby Cash was $11.39, up 17 3/4 cents,
Jul 24 Soybeans closed at $12.08 1/2, up 16 3/4 cents,
Nov 24 Soybeans closed at $11.87 1/4, up 14 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.
