Beans At Overnight Highs into Day Trade

A hand scooping soybeans

Soybean prices are 4 ¼ to 8 ½ cents stronger this morning as we start the new week. The July contract ended sub-$12 as the last domino to fall. The front month contracts were 9 to 10 cents in the red at the end of Friday’s trading, with March down by 5 cents for the week and Nov by 7 ¼ cents. Soymeal futures ended the day $2.20 to $2.40/ton lower past March’s 30 cent drop on Friday. That left the March contract at a net weekly loss of $10/ton. Front month Soy oil prices faded on Friday with 51 to 68 point losses, but were still up by 2.5 cents for the week. 

CFTC’s weekly update had managed money firms adding 24k shorts in soybeans during the week that ended 2/6. With a few new longs added as well, that raised their net short 22k contracts to 130k contracts. Commercial soybean hedgers were mostly closing existing shorts, though with some new longs added the group grew their net long by 17k contracts to 38,792. Managed money traders were shown adding longs to their meal position, with 5k new contracts in play and a 14,590 contract net short. The funds were 44,225 contracts net short in soybean oil as of 2/6, a 10k contract weaker position for the week. 

The BAGE (Argentine futures exchange in Buenos Aires) showed a decline in soybean condition ratings last week, to 31% good/ex. That compares to 16% a year ago. SAFRAS lowered their Brazilian soybean estimate a sharp 9 MMT, to 149 MMT. That’s close to CONAB’s 149.4 MMT and both are well below USDA’s more “wait and see” 156 MMT.  Brazilian basis levels are weak due to harvest pressure, with export offerings sharply below US values. 

Mar 24 Soybeans  closed at $11.83 1/2, down 10 cents, currently up 8 1/4 cents

Nearby Cash   was $11.30 3/8, down 10 cents,

May 24 Soybeans  closed at $11.90, down 9 3/4 cents, currently up 7 3/4 cents

Jul 24 Soybeans  closed at $11.99 3/4, down 9 1/2 cents, currently up 7 3/4 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.