Soybeans Pulled Down by Meal
Soybeans were feeling some pressure on Tuesday, with contracts falling into the close and settling near the lows. Futures were down 4 to 11 cents across the board when the final bell rang. Soymeal futures were a pressure factor, down $3.80 to $8.70/ton. Soy Oil futures were mixed, with the front months steady to a penny higher and other contracts down 6 to 22 points.
A private export sale of 104,000 MT of old crop soybeans to China was reported by USDA this morning.
NASS reported initial soybean crop condition ratings at 72% good/excellent, putting the Brugler500 Index at 379, matching conditions in 2020 for this week and also similar to 2018 and 2016. Of all the 18 major states, just 2 (KY and LA) saw condition ratings below the same week last year. Most saw substantial increases over last year, with IN, IL, MO, NE, OH, and SD all showing at least a 30 point improvement over the same week in 2023.
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 Brazilian bean production from to 152 MMT. CONAB data will be out on Thursday. Argentine soybean production is expected to see little to no change at 50 MMT.
Jul 24 Soybeans closed at $11.78, down 10 1/4 cents,
Nearby Cash was $11.21 7/8, down 10 cents,
Aug 24 Soybeans closed at $11.71 3/4, down 11 cents,
Nov 24 Soybeans closed at $11.51 1/2, down 7 1/4 cents,
New Crop Cash was $10.95 7/8, down 7 1/4 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.