Soybeans Pull Back from Highs, Close with Gains on Bullish USDA Data
Soybeans faded the initial gains post USDA report release this morning, but bulls managed to close the day with contracts up 1 ¼ to 6 cents across most contracts on Friday. January closed out the week with a 36 ½ cent gain since last Friday. CmdtyView’s national front month Cash Bean price was up 4 1/2 cents at $9.75 1/2. Soymeal futures provided some pressure with losses of $1.70 to $2.30/ton on the session. Soy Oil futures gave the complex some strength, with 45 to 64 point gains across the board.
Private 2024/25 soybean export sales of 107,000 MT to China and 132,000 MT to unknown destinations were reported by the USDA this morning.
This morning’s Crop Production report saw NASS slash their US soybean crop projection, with yield down 1.4 bushel per acre at 51.7 bpa. That helped to tighten down the production total to 4.461 billion bushels, a 121 mbu reduction from October.
The sharp drop in production took the US ending stocks down by 80 mbu to 470 mbu. As for the demand side, crush was trimmed by 15 mbu to 2.41 bbu, with exports down 25 mbu to 1.825 bbu. For the world side, production out of South America was left unchanged. World ending stocks were tightened down by 2.91 MMT to 131.74 MMT, mainly on the US number.
Commitment of Traders data showed managed money spec funds in soybean futures and options trimming 2,114 contracts from their net short as of Tuesday. On November 5 they were net short 70,112 contracts.
Nov 24 Soybeans closed at $10.16 3/4, up 1 1/4 cents,
Nearby Cash was $9.75 1/2, up 4 1/2 cents,
Jan 25 Soybeans closed at $10.30 1/4, up 4 cents,
May 25 Soybeans closed at $10.56 3/4, up 6 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.