Beans Gain on Stronger Soy Oil

Soybean meal prices weakened by 3% in the old crop October contract which dragged the other nearby contracts $4.70 to $5.50/ton weaker. BO futures were up by 2.6% to 3% on the day. Soybean prices closed the Thursday session with 2 to 4 3/4 cent gains. Meal prices have faded nearly $60/ton in the October contract on 6 straight down days. The CME Synthetic Soy Crush spread was firmer on the day, but at $1.87/bu remains below the August +$2.20 levels. 

Brazil’s Abiove said crushing margins have weakened and turned negative  resulting in a reduced daily output. Brazil processes ~202k MT of beans per day under normal circumstances according to Abiove.

Weekly US soybean sales were 1 MMT from the week of 9/22. That was 24.7% above the sale from last week and 3% above the same week last year. China and Mexico were the top buyers with 548k MT and 217k MT respectively. The week’s exports were 269,200 MT, mostly to Japan and China.  

For the products, meal sales were 86,335 MT for 21/22 delivery and 150k MT for 22/23 delivery. Meal exports were 249.7k MT for a season’s total of 11.5 MMT. For soybean oil, USDA reported net cancelations of 5k MT for 21/22 and 653 MT for 22/23. The week’s shipments were 2k MT for a season total of 675.9k MT. 

Nov 22 Soybeans  closed at $14.10 3/4, up 2 cents,

Nearby Cash   was $13.62 3/4, up 1 5/8 cents,

Jan 23 Soybeans  closed at $14.20 1/2, up 4 1/4 cents,

Mar 23 Soybeans  closed at $14.24 3/4, up 4 cents,