Beans Up by Double Digits

Soybean futures are trading with double digit gains so far for the midweek session. The soy complex traded mixed to tighten crush margins on Tuesday. Meal futures ended with 0.7% to 1.23% losses, while soy oil bounced back from midday lows to close mixed. Soybeans traded mostly higher, in a  -8 1/4 to +11 1/4 cent intraday range (Jan). At the close prices were 1 to 5 cents in the black. 

There were zero deliveries against December meal on FND, but the ADM house account put out 500 contracts against December BO.  Most were stopped by a JPM commercial client. 

Bean bulls are pushing high spring temps and limited rain in Argentina, while bears point toward the Argentine old crop sales incentives on exchange rate and taxes. Analysts estimate the NASS Fats and Oils report will show 195.9 mbu (a 10-mo high) of soybeans were processed during October. The full range of estimates is from 194 to 197.1 mbu. Soy oil stocks are expected to be 2.107b lbs. 

Brazil has 87% of soybeans planted according to the AgRural. AgRural estimates their total production at 150.5 MMT. 

Canadian Canola Prices ended the day with $17-$18 CAD/MT (2.2%) gains in the front months. Analyst estimates ahead of StatsCan production data show canola is expected to be between 18.6 MMT and 20.5 MMT vs.  September’s 19.1 MMT estimate. The average guess is for a 100k MT boost. Soybean production estimates range 6.3 to 6.8 MTM from 6.5 MTM in September’s report, the average is to see no change.

Jan 23 Soybeans  closed at $14.59 1/2, up 2 1/4 cents, currently up 15 1/4 cents

Nearby Cash   was $14.37 ¼ on Tuesday, up 2 5/8 cents,

Mar 23 Soybeans  closed at $14.66, up 3 1/4 cents, currently up 15 1/4 cents

May 23 Soybeans  closed at $14.74, up 4 cents, currently up 14 1/2 cents