Soy Falls into Midweek’s Day Trade

Beans are sitting near their overnight lows on double digit losses so far for the midweek session. The products are also Soybeans bounced 6 to 12 cents from the intraday lows into the Tuesday close. For May that ended the day on a 4 1/2 cent giveback, but the other contracts ended Turnaround Tuesday with double digit losses. Front month soymeal futures ended the day with $6.10 to $6.90/ton losses, taking the May contract to a net $8.60 loss for the week. Soybean oil firmed up from the triple digit losses, but still closed the day 1.4% to 1.6% in the red. 

AgRural reported the Brazilian soybean harvest was 76% complete – up 6% points from last week but still trailing the rapid 81% pace last year. StoneX raised their soybean production outlook by 3 MMT for Brazil to 157.7 MMT, with 96 MMT of exports for 22/23. Official Brazilian export data showed 13.27 MMT of soybeans were exported in March. That was up from 12.19 MMT last year.

Argentina’s latest ‘soy-dollar’ preferential exchange rate, the 3rd of its kind, is set to roll out on Wednesday. This plan will lock in a 210 peso/dollar exchange rate for soybeans and soy products sold for export from Wednesday – May 31. The current ratio is 210.8099 pesos to $ - compared to 60/1 before covid and 170/1 at the start of 2023. The Argentine government needs the tax revenue from exports, but the severe declines in 2023 crop production will limit exports. 

May 23 Soybeans  closed at $15.17 1/2, down 4 1/2 cents, currently up 5 cents

Nearby Cash   was $14.73, down 8 1/4 cents,

Jul 23 Soybeans  closed at $14.82 3/4, down 12 1/4 cents, currently up 5 cents

Nov 23 Soybeans  closed at $13.20, down 12 3/4 cents, currently down 12 1/2 cents