Soybean Bulls Pushing Back Following Lack of Chinese Threat
The soybean market is showing 10 to 17 cent gains so far on Tuesday midday trade. Contracts are well off their overnight lows as beans have been left off a list of Chinese retaliatory tariffs. CmdtyView’s national front month Cash Bean price is up 16 cents at $10.13 1/4. Soymeal futures are up $10/ton, with Soy Oil futures 71 points lower. Meal futures are helped by dryness expected in parts of Argentina over the next week.
On Saturday President Trump signed an executive order to impose an additional 10% tariff on Chinese goods, starting on Tuesday. While both imports for Canada and Mexico have been pushed back, the Chinese tariffs are still in place, though President Trump is expected to meet with President XI this week. Overnight, China issued a retaliatory 15% tariffs on coal and LNG, and 10% on crude oil, ag machinery, and other automobiles starting on February 10.
Monday afternoon’s monthly Fats & Oils report indicated a total of 217.7 mbu of soybeans were crushed during December. That was in line with estimates and a 3.65% increase from November and 6.57% larger than last year. Soy oil stocks were below estimates at 1.696 billion lbs, a drop of 7% from a year ago.
Celeres estimates the Brazilian crop at 174 MMT, up 3.2 MMT from their previous estimate. StoneX, on the other hand, trimmed their estimate by 0.51 MMT to 170.89 MMT.
Mar 25 Soybeans are at $10.75, up 16 3/4 cents,
Nearby Cash is at $10.13 1/4, up 16 cents,
May 25 Soybeans are at $10.88 1/4, up 15 1/2 cents,
Nov 25 Soybeans are at $10.74 1/4, up 11 cents,
New Crop Cash is at $10.10 3/4, up 10 3/4 cents,
On the date of publication, Austin Schroeder 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.