To start the week soybeans traded on both sides of unchanged in a choppy session and closed with small gains. Spillover support came from the sharply higher soybean oil market as the market continued to see gains from Friday’s EPA biofuels news. The market closed limit up ($3.00) on Friday and today contracts got close to or at the expanded limit of $4.50. But rains in the Midwest and expectations of improving crop condition ratings in the afternoon’s crop progress report limited gains. However, the crop progress report showed a 2% decline in crop conditions to 66% g/e.
NOPA crush for May came in at 192.8 MB, a bit lower than the average trade estimate of 193.5 MB but shattered the previous record for May of 183.6 MB set last year. Soybean oil stocks were much lower than expected and the lowest stocks for May in 21 years.
In Tuesday’s session soybeans dropped lower at the start of the overnight session but then got on the positive side and made small gains for the rest of the session. Light support came from yesterday afternoon’s crop progress report that lowered soybean conditions 2% to 66% g/e. Of the major states, conditions range from a high of 80% g/e for IA while OH is the lowest at 54% g/e. ND was down 3% to 63% g/e, MN went up 1% to 74% g/e and SD went up 3% to 62% g/e. Gains were limited by reports that the Senate’s version of the 45Z tax credit rules only reduce the tax credit for foreign feedstocks used in biofuels by 20% while the House bill eliminates the credit for foreign feedstocks. Rains in the forecast for most of the Midwest also limited gains. In export news, USDA reported a sale of 120,000 MT of soybean meal to an unknown destination.
On Wednesday soybeans were mostly lower overnight but got on the positive side at the end of the overnight session. The market saw the session highs midway through the day session, but the gains were trimmed late in the session and soybeans closed just above unchanged. Spillover support came from the strong gains in the wheat markets. Favorable forecasts limited gains as the next 2 weeks will be warmer with average to above average precip. And a day without much fresh news for soybeans kept the market from moving much in either direction. Brazil expects to export 14.4 MMT of soybeans in June, which would be a new record if realized.
Target $10.85 to advance sales.
For the week, July soybeans were at $10.68 down 1.75 cents while Aug soybeans were at $10.715 up 2.5 cents. July soybean meal was at $284.10 down $7.80 and July soybean oil was at $54.47 up $3.86.
Soybean Weekly Comments June 20
Soybean Weekly Comments June 20
To start the week soybeans traded on both sides of unchanged in a choppy session and closed with small gains. Spillover support came from the sharply higher soybean oil market as the market continued to see gains from Friday’s EPA biofuels news. The market closed limit up ($3.00) on Friday and today contracts got close to or at the expanded limit of $4.50. But rains in the Midwest and expectations of improving crop condition ratings in the afternoon’s crop progress report limited gains. However, the crop progress report showed a 2% decline in crop conditions to 66% g/e.
NOPA crush for May came in at 192.8 MB, a bit lower than the average trade estimate of 193.5 MB but shattered the previous record for May of 183.6 MB set last year. Soybean oil stocks were much lower than expected and the lowest stocks for May in 21 years.
In Tuesday’s session soybeans dropped lower at the start of the overnight session but then got on the positive side and made small gains for the rest of the session. Light support came from yesterday afternoon’s crop progress report that lowered soybean conditions 2% to 66% g/e. Of the major states, conditions range from a high of 80% g/e for IA while OH is the lowest at 54% g/e. ND was down 3% to 63% g/e, MN went up 1% to 74% g/e and SD went up 3% to 62% g/e. Gains were limited by reports that the Senate’s version of the 45Z tax credit rules only reduce the tax credit for foreign feedstocks used in biofuels by 20% while the House bill eliminates the credit for foreign feedstocks. Rains in the forecast for most of the Midwest also limited gains. In export news, USDA reported a sale of 120,000 MT of soybean meal to an unknown destination.
On Wednesday soybeans were mostly lower overnight but got on the positive side at the end of the overnight session. The market saw the session highs midway through the day session, but the gains were trimmed late in the session and soybeans closed just above unchanged. Spillover support came from the strong gains in the wheat markets. Favorable forecasts limited gains as the next 2 weeks will be warmer with average to above average precip. And a day without much fresh news for soybeans kept the market from moving much in either direction. Brazil expects to export 14.4 MMT of soybeans in June, which would be a new record if realized.
Target $10.85 to advance sales.
For the week, July soybeans were at $10.68 down 1.75 cents while Aug soybeans were at $10.715 up 2.5 cents. July soybean meal was at $284.10 down $7.80 and July soybean oil was at $54.47 up $3.86.