Soybeans Being Pulled Higher by Meal

Large pile of soybeans__600x450

Soybeans are trading 3 to 8 cents higher at midsession, led by old crop July.  Preliminary open interest showed long liquidation on Friday, dropping 13,200 contracts.  The Goldman Roll is underway, moving longs out of July into deferred position. Soymeal futures are providing the backbone for the beans, up $4.60 to $7.40 thus far. Soy Oil futures are down 38 to 40 points amidst competition from Malaysian palm oil. 

CFTC Commitment of Traders data for the week ending June 4 showed the managed money spec funds increasing their soybean net short by 45,524 contracts, taking it 59,741 contracts (futures + options).

Traders on average expect USDA to show 89% of the US crop planted as of Sunday. That would be up from 78% a week ago, while still lagging last year’s rapid pace. 

USDA Export inspections for the week ending June 6 totaled 231,002 MT for soybeans, down from 361,217 last week but running stronger than the 147,645 MT a year ago. 

Trade estimates for Wednesday’s USDA reports average 346-350 million bushels for old crop US soybeans and 448-457 million for new crop. On average, traders are looking for a 2 MMT drop in Argentine corn production and little to no change in the 50 MMT soybean number released in May.  The average trade guess for Brazilian beans is down 2.2  MMT to 151.8 MMT.

Jul 24 Soybeans  are at $11.87 1/2, up 8 1/4 cents,

Nearby Cash  is at $11.30 1/4, up 8 5/8 cents,

Aug 24 Soybeans  are at $11.83 1/2, up 6 3/4 cents,

Nov 24 Soybeans  are at $11.60 3/4, up 3 cents,

New Crop Cash  is at $11.04 3/4, up 3 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.