Soybeans Fall Double Digits

The bean market stayed in the red after gapping lower at the overnight open, with improved condition ratings offsetting the drier forecast. September soybean futures ran away from the August expiration gap, down a dime at the open last night. November worked higher to close its overnight gap, but still closed near the low for the day on a 20 cent loss. Soymeal futures led the way lower, closing near the lows on 2.9% losses of $11/ton. Soybean Oil futures ended the session 81 points higher, providing some cushion for the beans during meal’s selloff. Canadian Canola Prices closed with nearly 1% gains to $777 CAD/MT.

The Chinese yuan fell sharply after an emergency meeting of the central bank decided to cut rates to stimulate the economy. The USD/CNY was similar to October of last year at 7.28:1, both of which are the strongest dollar (/weakest yuan) since 2008. Dalian No2 Soybean Prices have gotten a double whammy, dropping from a 5,039 yuan/MT high last week to a 4,924 price today. In $/bu that pulled them back to $18.71 from $19.74. 

The updated cmdtyView Bean Yield from Barchart was raised 0.3 bpa to 50.75. At the state level: Barchart has IA yields 0.11 stronger to 57.78 (USDA @ 58), IL up 1/10th to 57.5 (62), NE shown as 59.7 (58), and MN at 48.6 bpa (49). Production was then upped by 2mbu to 4.392, compared to the USDA forecast of 4.205.

NOPA members reported processing a record 173.3 mbu in July, coming in 2 mbu above the average trade guess. That was up from June’s 165 mbu crush and 3.1 mbu higher yr/yr. Bean oil stocks were reported at 1.527 billion lbs, 9.6% tighter than June.

China’s Customs data had 9.73 MMT of soybean imports for July, setting the YTD total at 62.3 MMT. That is 15% more than last year’s pace. 

Sep 23 Soybeans  closed at $13.23 1/4, down 29 3/4 cents,

Nearby Cash   was $13.03 7/8, down 22 1/2 cents,

Nov 23 Soybeans  closed at $13.05 1/4, down 20 3/4 cents,

Jan 24 Soybeans  closed at $13.15 1/2, down 19 1/4 cents,