Soybeans started the week by trading back and forth on both sides of unchanged in a choppy session and closed with small gains. Support came from technical buying and a sharply lower US dollar. Spillover support came from the strong gains in the soybean oil market. Gains were limited by expectations of good planting progress in the afternoon’s crop progress report. In export news, USDA reported a sale of 145,000 MT of soybean cake and meal for delivery to the Philippines. The Buenos Aires region of Argentina saw heavy rains and localized flooding over the weekend. Soybean harvest in the region is 48% complete vs. 65% average. Last week’s export shipments were below the range of trade expectations and a marketing year low.
Soybeans traded back and forth in Tuesday’s choppy session but found strength late in the day session to close with small gains. Spillover support came from the strong gains in the wheat and corn markets. Technical buying was also supportive. Gains were limited by ideas that the current rains in the Northern Plains may switch some acres from corn to soybeans. Nationwide soybean planting is running 13% above the 5-year average pace. ND is at 46% complete vs. 23% average, MN is at 81% vs. 55% average and SD is at 71% vs. 43% average. In South American news, BAGE estimates 1.8 million acres of soybeans in Argentina were affected by last week’s heavy rains, which is about 4% of the total soybean acres in the country. Dr Cordonnier left his South American production estimates unchanged with Brazil at 169 MMT and Argentina at 50 MMT.
In Wednesday’s session soybeans saw small gains overnight and added to the gains in the day session, closing solidly higher. Support came from the weaker US dollar and technical buying. Support also came from biofuel optimism as the EPA head told a House subcommittee that EPA is working quickly to finalize updated biofuel blending mandates. Brazil’s ag export group estimates May soybean exports at 14.52 MMT, which would be the 3rd largest amount for May. April exports were at 15.3 MMT, the 2nd highest for that month. Argentina said they will not extend export tax breaks for soybeans. The current rate of 26% will go up to 33% at the end of June.
On Thursday soybeans gapped lower at the start of the overnight session and stayed on the lower side overnight. The market turned positive at the start of the day session and held those small gains through the close. The soybean market has now closed higher for 4 sessions in a row. Overnight pressure came from biofuel concerns as the House budget bill (that passed Thursday morning) ends most Biden era tax breaks for clean energy subsidies. Technical buying and heavy rains in Argentina during soybean harvest helped to get soybeans on the positive side in the day session. Last week’s export sales were at the top end of the range of trade expectations. But new crop sales were minimal and the lowest level for mid-May in 20 years.
Technically July soybeans have dropped $1.1975 from their Feb high to their April low. This week’s recovery had July soybeans testing their 67% retracement level. The next resistance level is $10.85.
Target $10.85 to advance sales.
For the week, July soybeans were at $10.6025 up 10.25 cents while Aug soybeans were at $10.56 up 9.75 cents. July soybean meal was at $296.20 up $4.30 and July soybean oil was at $49.35 up 42 cents.
Soybean Weekly Comments May 23
Soybean Weekly Comments May 23
Soybeans started the week by trading back and forth on both sides of unchanged in a choppy session and closed with small gains. Support came from technical buying and a sharply lower US dollar. Spillover support came from the strong gains in the soybean oil market. Gains were limited by expectations of good planting progress in the afternoon’s crop progress report. In export news, USDA reported a sale of 145,000 MT of soybean cake and meal for delivery to the Philippines. The Buenos Aires region of Argentina saw heavy rains and localized flooding over the weekend. Soybean harvest in the region is 48% complete vs. 65% average. Last week’s export shipments were below the range of trade expectations and a marketing year low.
Soybeans traded back and forth in Tuesday’s choppy session but found strength late in the day session to close with small gains. Spillover support came from the strong gains in the wheat and corn markets. Technical buying was also supportive. Gains were limited by ideas that the current rains in the Northern Plains may switch some acres from corn to soybeans. Nationwide soybean planting is running 13% above the 5-year average pace. ND is at 46% complete vs. 23% average, MN is at 81% vs. 55% average and SD is at 71% vs. 43% average. In South American news, BAGE estimates 1.8 million acres of soybeans in Argentina were affected by last week’s heavy rains, which is about 4% of the total soybean acres in the country. Dr Cordonnier left his South American production estimates unchanged with Brazil at 169 MMT and Argentina at 50 MMT.
In Wednesday’s session soybeans saw small gains overnight and added to the gains in the day session, closing solidly higher. Support came from the weaker US dollar and technical buying. Support also came from biofuel optimism as the EPA head told a House subcommittee that EPA is working quickly to finalize updated biofuel blending mandates. Brazil’s ag export group estimates May soybean exports at 14.52 MMT, which would be the 3rd largest amount for May. April exports were at 15.3 MMT, the 2nd highest for that month. Argentina said they will not extend export tax breaks for soybeans. The current rate of 26% will go up to 33% at the end of June.
On Thursday soybeans gapped lower at the start of the overnight session and stayed on the lower side overnight. The market turned positive at the start of the day session and held those small gains through the close. The soybean market has now closed higher for 4 sessions in a row. Overnight pressure came from biofuel concerns as the House budget bill (that passed Thursday morning) ends most Biden era tax breaks for clean energy subsidies. Technical buying and heavy rains in Argentina during soybean harvest helped to get soybeans on the positive side in the day session. Last week’s export sales were at the top end of the range of trade expectations. But new crop sales were minimal and the lowest level for mid-May in 20 years.
Technically July soybeans have dropped $1.1975 from their Feb high to their April low. This week’s recovery had July soybeans testing their 67% retracement level. The next resistance level is $10.85.
Target $10.85 to advance sales.
For the week, July soybeans were at $10.6025 up 10.25 cents while Aug soybeans were at $10.56 up 9.75 cents. July soybean meal was at $296.20 up $4.30 and July soybean oil was at $49.35 up 42 cents.