Beans Close Double Digits Lower on Friday

Soybeans headed into the weekend with 10 to 14 cent losses. November soybeans printed a 30 cent range on Friday and ended the week with a net 25 3/4 cent loss. Soymeal futures were $4.70 to $4.90 weaker on Friday, closing out the week on a weekly $12.30/ton drop. Soybean Oil futures finished Friday 5 to 26 points weaker, with September down 126 Fri/Fri. The updated cash prices were UNCH for old crop beans, but a penny higher for the oil and $5 higher for the meal. New crop cash beans were listed as $12.70, 30 cents higher, with 62 c/lb BO and $380/ton meal. 

CFTC confirmed managed money long liquidation in the weekly CoT update. Soybean spec traders closed 22.3k longs and added 8k shorts during the week that ended 8/8, leaving the group at a 64k contract net long. Managed money funds were lightening up meal exposure, only reducing their net long by 1.2k contracts on a 9.3k lighter OI. In BO, CFTC reported the funds were 46,523 contracts net long on 8/8. 

USDA data cut soybean yield by 1.1 bpa to 50.9. The average trade guess was to see a 6/10th cut, though the low end was at 50.5. Acreage went unchanged in the report for a net production loss of 95 mbu to 4.205. Old crop imports were upped by 5 and went to stocks and new crop imports were raised by 10 mbu. Thus total new crop supply was listed at 4.496 bbu. The lighter supply pulled 25 mbu out of exports for a 245 mbu carryout. 

At the global level, the WAOB made little changes to the balance sheet – though Chinese import demand was 1 higher to 100 MMT. New crop saw 2.5 MMT production losses, almost exclusively via U.S. Global carryout was 1.6 MMT tighter to 119.4, compared to 120 MMT expected. 

Sep 23 Soybeans  closed at $13.37 1/4, down 14 3/4 cents,

Nearby Cash   was $13.09 1/2, down 10 1/4 cents,

Nov 23 Soybeans  closed at $13.07 1/2, down 10 3/4 cents,

Jan 24 Soybeans  closed at $13.17 1/4, down 11 cents,