Soybeans Drop ahead of Export Sales Data

Front month beans ended the midweek session with 3 to 7 cent losses. November was back above the $13 mark at the overnight high. Soymeal futures were $5 to $5.70 weaker at the close.  Soybean Oil finished the day with triple digit gains of as much as 128 points.  

USDA announced a 126k MT soybean sale to China this morning. The weekly Export Sales report is expected to show between 750k MT and 1.5 MMT of soybeans were sold during the week that ended 10/19. Soymeal bookings are estimated between 250k and 500k MT, with less than 10k MT of soy oil sold. 

A Chinese delegation signed framework agreements in IA for soybeans, corn, sorghum and wheat, potentially signaling bulk purchases. Wire sources indicate the agreements ~$1b in business, the first of its kind with China since 2017.  The agreements are a promise to buy X quantity over time, but previous framework deals have seen some export sales agreements within a few days of signing. 

Anec data has October soybean exports at 6.142 MMT for Brazil, that compares to 3.589 MMT last year. 

AgRural reported soy planting in Brazil advanced 13% points for the week to 30% complete. Soybean planting in Brazil’s largest soybean production state (Mato Grosso) is estimated to be 60% complete. Data from private analytics firm StoneX estimates that ~25% of the soybeans have been forward sold, up from 17% last year but trailing the 5-yr average for this point in the growing season.  

Nov 23 Soybeans  closed at $12.88 1/4, down 7 cents,

Nearby Cash   was $12.33 1/2, down 6 3/8 cents,

Jan 24 Soybeans  closed at $13.08 1/2, down 6 cents,

Mar 24 Soybeans  closed at $13.21 3/4, down 4 1/4 cents,