Soybean Meal Futures Market News and Commentary
Soy futures are 41 to 51 cents higher this morning, reversing part of Thursdays triple digit decline in a classic dead cat bounce. Expanded limits are again in place, as soybean oil futures were lock limit down with 550 point losses yesterday. The CME also increased margin requirements in an attempt to dampen volatility. Soybean bears utilized the expanded $1.50 per day limits yesterday, closing $0.83 3/4 to $1.18 3/4 in the red. Preliminary OI data showed a net decrease of 12,050 contracts, confirming the sharp selloff was primarily long liquidation. Soymeal futures closed Thursday $15.90 to $17.70 weaker.
USDA reported 65,282 MT of old crop beans sold during the week ending 6/10. For new crop bean sales, USDA reported just 6,500 MT of net new business. Outstanding forward sales are still 36% ahead of the pace at this time last year, with 7.56 MMT on the book. China accounts for more than 40% of that.
Soymeal sales for 2020/21 delivery were 177,342 MT for the week tha... Read more