Soybeans Turn Back Higher on Wednesday AM

Soybeans are trading 3 to 6 cents in the green on Wednesday morning. They closed Turnaround Tuesday with contracts down 4 ½ to 7 ¼ cents. Soymeal futures were back up on the day, with gains of $2.80 to $6.10/ton. Soy Oil collapsed 131 to 184 points on the session. On Tuesday morning the White House issued an announcement of increased tariffs on Chinese goods, but did not include used cooking oil on the list. Rumors of such a tariff had buoyed price ideas for US soyoil recently.

The weekly Crop Progress report from NASS showed IA, IL, MI, MN, NE, ND and SD lagging behind the 5-year average planting pace. Limited precip over the next week should allow for planting to catch up in most of those states on the western side.

NOPA data will be updated on Wednesday (today), as traders are expecting to see April crush at 183.07 mbu. Soy oil stocks are estimated at 1.882 billion lbs. 

The monthly released from CONAB showed expected Brazilian production at 147.68 MMT on Tuesday morning. That was a 1.16 MMT increase from last month, as the agency increased acreage by 498,000 hectares (1.23 million acres).

Nearby Cash  was $11.52 5/8, down 4 3/4 cents,

Jul 24 Soybeans  closed at $12.14 1/2, down 5 cents, currently up 6 cents

Nov 24 Soybeans  closed at $12.05, down 7 1/4 cents, currently up 5 1/2 cents

New Crop Cash  was $11.48, down 7 1/8 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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