Gains Continuing for Soybeans

Overnight soy action left the board higher after digesting the USDA’s monthly data. Preliminary OI data showed net new buying across the bean complex on report day, with a 2.4k contract inflow. Soybeans were fractionally to 4 1/2 cents higher at the close yesterday. Soybean meal also bounced on Wednesday, ending up by $0.50 to $2.30/ton. Soybean oil prices gave back 20 to 37 points on the day. The updated USDA cash average prices were 10c higher for soybeans to $14.30/bu, $25/ton higher for meal to $450, and UNCH at 68 cents/lb for soy oil. 

Traders estimate soybean bookings were between 400k MT and 1 MMT during the week that ended 02/02. New crop bean export sales are estimated to be below 400k MT. Pre-report estimates for soymeal range 100k to 300k MT, while analysts aren’t looking for more than 10k MT of soy oil bookings. USDA’s FAS will release the report shortly. 

The domestic soybean S&D tables saw a 15mbu cut to crush yesterday, loosening projected ending stocks to 225. The world soy numbers saw a 5 MMT production trim, as Argentina was cut 4.5 to 41 MMT. The Rosario Grains Exchange estimated Argentina at 34.5. USDA left Brazil at 153 MMT for production, but CONAB lifted their projection to match at 153. Global soybean stocks were 1.49 MMT tighter than January at 102.3 MMT from the WASDE report. 

Mar 23 Soybeans  closed at $15.19 3/4, up 4 1/2 cents, currently up 7 1/2 cents

Nearby Cash   was $14.77 3/4, up 3 3/4 cents,

May 23 Soybeans  closed at $15.13 3/4, up 3 1/2 cents, currently up 5 1/2 cents

Jul 23 Soybeans  closed at $15.06, up 1 3/4 cents, currently up 3 1/2 cents