To start the week soybeans gapped higher at the start of the overnight session and held those levels overnight. The market added to the gains in the first part of the day session and then held those levels into the close to close sharply higher. Support came from the White House releasing a statement that China agreed to buy at least $17 billion of US ag goods annually through 2028, in addition to the $11 billion of soybean purchases (25 MMT) previously agreed to. Traders were optimistic that additional soybean purchases will be part of the $17 billion. Support also spilled over from the gains in the crude oil market. Last week’s export shipments were at the low end of the range of trade expectations. Marketing year-to-date shipments are running 22% behind last year’s pace.
Soybeans traded mostly on the higher side in Tuesday’s choppy session and closed mixed with small losses in the front months and small gains in the deferred contracts. Demand optimism continued to support soybeans after the White House’s announcement that China had agreed to buy an additional $17 billion of US ag products. Reports that the US and China are also discussing removing the 10% tariffs on each other added support as that would make US soybeans more competitive against South American soybeans. Gains were limited by the fact that China has not confirmed the White House statement (but China hasn’t denied it either).
In Wednesday’s session soybeans traded mostly lower overnight and added to the losses in the day session. The market was able to trim the losses a bit at the end of the session but still closed lower. Pressure spilled over from the losses in the crude oil market. Pressure also came from China’s statement on last week’s US/China summit. The statement was very vague and didn’t reference the additional $17 billion in ag purchases. Good planting progress and a lack of major weather issues added pressure. With Brazil harvesting a record 180.0 MMT soybean crop, ending stocks are estimated at 8.25 MMT. That would be the highest in 9 years if realized.
Soybeans traded on both sides of unchanged in a very choppy session on Thursday and closed with losses. Early gains spilled over from the higher crude oil market, but as that market turned lower in the day session, it pulled soybeans lower with it. A lack of fresh news, including any updates on Chinese ag purchases, added pressure. China auctioned off 62,000 MT of soybeans from their reserves last week and will auction off another 51,000 MT on Monday, likely to make room for recent purchases of US soybeans. Last week’s export sales were within the range of trade expectations and a 4-week high. Marketing year to date sales are running 18% behind last year’s pace. New crop sales total 19 MB vs. 38 MB at the same time last year.
Hedgers should look to advance new crop soybeans sales at $12.25 Nov.
July soybean support is $11.67. Nov soybean support is at $11.45.
For the week, July soybeans were at $11.965 up 19.5 cents while Nov soybeans were at $11.8775 up 17.0 cents. July soybean meal at $331.90 down $2.40 and July soybean oil was at $73.98 up 10 cents.
Soybean Weekly Comments May 22
Soybean Weekly Comments May 22
To start the week soybeans gapped higher at the start of the overnight session and held those levels overnight. The market added to the gains in the first part of the day session and then held those levels into the close to close sharply higher. Support came from the White House releasing a statement that China agreed to buy at least $17 billion of US ag goods annually through 2028, in addition to the $11 billion of soybean purchases (25 MMT) previously agreed to. Traders were optimistic that additional soybean purchases will be part of the $17 billion. Support also spilled over from the gains in the crude oil market. Last week’s export shipments were at the low end of the range of trade expectations. Marketing year-to-date shipments are running 22% behind last year’s pace.
Soybeans traded mostly on the higher side in Tuesday’s choppy session and closed mixed with small losses in the front months and small gains in the deferred contracts. Demand optimism continued to support soybeans after the White House’s announcement that China had agreed to buy an additional $17 billion of US ag products. Reports that the US and China are also discussing removing the 10% tariffs on each other added support as that would make US soybeans more competitive against South American soybeans. Gains were limited by the fact that China has not confirmed the White House statement (but China hasn’t denied it either).
In Wednesday’s session soybeans traded mostly lower overnight and added to the losses in the day session. The market was able to trim the losses a bit at the end of the session but still closed lower. Pressure spilled over from the losses in the crude oil market. Pressure also came from China’s statement on last week’s US/China summit. The statement was very vague and didn’t reference the additional $17 billion in ag purchases. Good planting progress and a lack of major weather issues added pressure. With Brazil harvesting a record 180.0 MMT soybean crop, ending stocks are estimated at 8.25 MMT. That would be the highest in 9 years if realized.
Soybeans traded on both sides of unchanged in a very choppy session on Thursday and closed with losses. Early gains spilled over from the higher crude oil market, but as that market turned lower in the day session, it pulled soybeans lower with it. A lack of fresh news, including any updates on Chinese ag purchases, added pressure. China auctioned off 62,000 MT of soybeans from their reserves last week and will auction off another 51,000 MT on Monday, likely to make room for recent purchases of US soybeans. Last week’s export sales were within the range of trade expectations and a 4-week high. Marketing year to date sales are running 18% behind last year’s pace. New crop sales total 19 MB vs. 38 MB at the same time last year.
Hedgers should look to advance new crop soybeans sales at $12.25 Nov.
July soybean support is $11.67. Nov soybean support is at $11.45.
For the week, July soybeans were at $11.965 up 19.5 cents while Nov soybeans were at $11.8775 up 17.0 cents. July soybean meal at $331.90 down $2.40 and July soybean oil was at $73.98 up 10 cents.