Soybeans are firming up after a weak start for the week. So far on Wednesday futures are up by 7 ¾ to 9 ½ cents, with $0.70 to $1.80 gains in the meal and 89 point strength in the oil. September soybean futures ran away from the August expiration gap on Tuesday, down a dime at the open. November worked higher to close its own overnight gap, but still closed near the low for the day on a 20 cent loss. Preliminary open interest showed net new selling on the day, rising 5,371 contracts. 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 on Tuesday. 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 hiked 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, about 9.6% tighter than June. Implied soybean oil use was record large for any month, not just July.
Sep 23 Soybeans closed at $13.23 1/4, down 29 3/4 cents, currently up 10 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, currently up 9 1/2 cents
Jan 24 Soybeans closed at $13.15 1/2, down 19 1/4 cents, currently up 9 cents
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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