To start the week soybeans gapped 10 cents lower to start the overnight session and spent the entire session on the lower side and closed with losses. Pressure came from reports of good rains through most of Argentina over the weekend. The European model added rains in both the 6 to 10 and 11-to-15-day forecasts. Argentina’s reduced export tariffs on grains went it effect today, adding pressure to the market. Last week’s export shipments were disappointing. Shipments were below the range of trade expectations and the lowest in 17 weeks. AgRural lowered their estimate of Brazil’s crop by 0.5 MMT to 171.0 MMT. USDA is at 169.0 MMT. Brazil’s soybean harvest is 4% complete vs. 10.8% last year as rains have slowed harvest in the north.
Soybeans traded back and forth on both sides of unchanged in a choppy session and closed with small gains on Tuesday. Soybeans were supported by less than expected rains in Argentina over the last 24 hours while temps remain in the 90s. Support also came from Dr Cordonnier lowering his estimate of Argentina’s production by 2 MMT to 49 MMT. USDA’s current estimate is 52 MMT. Dr Cordonnier left his estimate of Brazil’s crop unchanged at 170 MMT vs. USDA at 169 MMT. Technical buying added support. In political news, a US House member from Texas introduced a bill to repeal the 45Z biofuel tax credits.
In Wednesday’s session soybeans climbed higher overnight and then added to the gains in the day session to close with strong gains. Soybeans were supported by hot and dry conditions returning to Argentina. In addition, rain continues to fall in northern Brazil, which is slowing harvest. Technical buying added to the gains. Chinese markets are closed through Feb. 4 for the Lunar New Year.
On Thursday soybeans slowly fell lower over the entire session and closed with double-digit losses. Pressure came from updated forecasts for Argentina that added more rain in the 6-to-15-day forecast. Worries about the Trump administration’s upcoming tariffs added pressure as tariffs on imports from Canada and Mexico are expected to into effect on February 1. Harvest picking up pace in Brazil and expectations of a huge crop added to the losses. Last week’s export sales were disappointing as they were at the very bottom of the range of trade expectations. But total sales are still running 12% above last year’s pace.
Target $10.85 to advance sales.
Mar soybeans support is at $9.47 while resistance is at $10.85.
For the week, March soybeans were at $10.42 down 9.75 cents while May soybeans were at $10.575 down 10.75 cents. March soybean meal was at $301.10 down $3.80 and March soybean oil was at $46.11 down 89 cents.
For the month, March soybeans were up 31.5 cents while May soybeans were up 35.25 cents. March soybean meal was down $15.80 and March soybean oil was up $5.75.
Soybean Weekly Comments January 31
Soybean Weekly Comments January 31
To start the week soybeans gapped 10 cents lower to start the overnight session and spent the entire session on the lower side and closed with losses. Pressure came from reports of good rains through most of Argentina over the weekend. The European model added rains in both the 6 to 10 and 11-to-15-day forecasts. Argentina’s reduced export tariffs on grains went it effect today, adding pressure to the market. Last week’s export shipments were disappointing. Shipments were below the range of trade expectations and the lowest in 17 weeks. AgRural lowered their estimate of Brazil’s crop by 0.5 MMT to 171.0 MMT. USDA is at 169.0 MMT. Brazil’s soybean harvest is 4% complete vs. 10.8% last year as rains have slowed harvest in the north.
Soybeans traded back and forth on both sides of unchanged in a choppy session and closed with small gains on Tuesday. Soybeans were supported by less than expected rains in Argentina over the last 24 hours while temps remain in the 90s. Support also came from Dr Cordonnier lowering his estimate of Argentina’s production by 2 MMT to 49 MMT. USDA’s current estimate is 52 MMT. Dr Cordonnier left his estimate of Brazil’s crop unchanged at 170 MMT vs. USDA at 169 MMT. Technical buying added support. In political news, a US House member from Texas introduced a bill to repeal the 45Z biofuel tax credits.
In Wednesday’s session soybeans climbed higher overnight and then added to the gains in the day session to close with strong gains. Soybeans were supported by hot and dry conditions returning to Argentina. In addition, rain continues to fall in northern Brazil, which is slowing harvest. Technical buying added to the gains. Chinese markets are closed through Feb. 4 for the Lunar New Year.
On Thursday soybeans slowly fell lower over the entire session and closed with double-digit losses. Pressure came from updated forecasts for Argentina that added more rain in the 6-to-15-day forecast. Worries about the Trump administration’s upcoming tariffs added pressure as tariffs on imports from Canada and Mexico are expected to into effect on February 1. Harvest picking up pace in Brazil and expectations of a huge crop added to the losses. Last week’s export sales were disappointing as they were at the very bottom of the range of trade expectations. But total sales are still running 12% above last year’s pace.
Target $10.85 to advance sales.
Mar soybeans support is at $9.47 while resistance is at $10.85.
For the week, March soybeans were at $10.42 down 9.75 cents while May soybeans were at $10.575 down 10.75 cents. March soybean meal was at $301.10 down $3.80 and March soybean oil was at $46.11 down 89 cents.
For the month, March soybeans were up 31.5 cents while May soybeans were up 35.25 cents. March soybean meal was down $15.80 and March soybean oil was up $5.75.