Beans Fading Overnight Gains

Soybeans are starting out Monday with prices mostly in the black. Overnight trade lifted the market to 10c gains, though current quotes are fractionally weaker to 2 1/2 cents higher. Meal futures were down $1.70 to $3.60 for the settle. July soymeal was down a net $4.40 for the week. Soybean prices ended Friday with double digit gains of as much as 23 cents. July was a net 15 1/4 cents higher for the week’s move, while November settled at a net weekly loss of 5 3/4 cents. Preliminary OI showed some short covering in July, but overall open interest shifted only 658 contracts.  Friday’s soy oil trade left futures 3.4% higher with triple digit gains. That flipped July BO net higher for the week. USDA cited the MN cash B100 price at $3.82 for the week, UNCH from last week. 

CFTC data had the soybean spec traders at just a 529 contract net long at the settle of 5/30. That was a 3,618 contract weaker net long through the week as more longs were closed than were shorts. The last time spec traders were net short in soybeans was during Covid (April 2020). Commercial soybean hedgers lightened their net short by 5k contracts to 74k as of 5/30. 

USDA reported 123,396 MT of old crop beans were sold for export during the week that ended 5/25. Accumulated commitments were up to 1.873 bbu, or 93% of the forecast. New crop sales were a modest 301k MT for the week but near the top end of the expected range. Accumulated new crop commitments reached 2.853 MMT, as the USDA forecast is set at 53.75 MMT. 

Jul 23 Soybeans  closed at $13.52 1/2, up 23 cents, currently down 1/2 cent

Nearby Cash   was $13.23 5/8, up 20 5/8 cents,

Aug 23 Soybeans  closed at $12.62 1/2, up 18 1/2 cents, currently up 2 cents

Nov 23 Soybeans  closed at $11.83 3/4, up 14 3/4 cents, currently up 1 1/2 cents