Soybeans started the session with strength, before fading and spending most of the overnight in the red. After the USDA release, the market bounced back to near breakeven with the board setting within 3 cents of UNCH into the day trade. On Wednesday they were down ¼ to 9 ¼ cents out to the summer 2024 contracts, with a few deferred contracts beyond that up ¼ to 2 ¾ cents. Meal was $3.20 to 5.10 lower in the front months, to add pressure to the complex. Soy oil was up 5 to 10 points in the front months.
Malaysia’s Palm Oil Board says the 8% export tax will remain in effect through March. The variable rate export tax has been in effect since Jan 21, capped at 8% above 3,450 ringgit prices. Malaysian Palm Prices were 1.3% higher on 2/23, to the highest prices since Jan 5th near 4,156 ringgits.
This morning’s Ag Outlook Forum saw USDA publish their initial estimate for the 2023/24 S&D table. Soybean acreage was forecast at 87.5 million acres, vs. the average trade estimate of 88.6 million. They factored in a record 2.3 bbu crush, and have 23/24 ending stocks estimated as 290 mbu (+35), compared to the trade’s average guess of 319 mbu.
Mar 23 Soybeans closed at $15.39 1/2, down 9 1/4 cents, currently up 3/4 cent
Nearby Cash was $14.94, down 9 5/8 cents,
May 23 Soybeans closed at $15.34 3/4, down 9 1/4 cents, currently up 1/2 cent
Jul 23 Soybeans closed at $15.27 1/2, down 9 1/4 cents, currently down 1/2 cent
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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