Soybean Futures Market News and Commentary
Soybean futures had a bit of a fake out post USDA report, with contracts plunging 40+ cents intraday but closing 2 to 5 ¾ cents higher. The nearby contracts were the exception with August expiring and September up 14 ¾ cents. Meal was up $8.20/ton on the day, with bean oil 23 points higher in September.
This morning’s Crop Production report from NASS saw the US soybean yield up 0.4 bpa from July’s WASDE number, on the high end of trade estimates. That helped production rise to 4.531 bbu, a 26 mbu rise from the official July number. The gain was limited by a 300,000 acre cut in the multiplier (harvested acres). New crop stocks were up 15 mbu to 245 mbu in part on larger production in larger carryover from 21/22. Those old crop stocks were up 10 mbu, as expected to 225 mbu. That came via a 10 mbu cut to exports.
USDA left Brazil and Argentine production numbers unch at 126 MMT and 44 MMT respectively. The increase to the US assisted in lifting the world carryout estimate... Read more