Beans Rallying After Weaker Open

Soybeans are 7 to 12 ¾ cents higher in early Monday futures action.  Front month Soymeal  futures led the beans lower on Friday with 2.4% to 2.9% losses of as much as $13.50/ton. Despite the pullback on Friday, meal was still up $3.90 for the week. Beans fell by 11 ¼ to 20 cents across the front months on Friday, leaving January futures with a net 7 ¼ cent loss for the week. Long liquidation was noted, with preliminary open interest down 3,454 contracts on Friday. Soy oil was the outlier on Friday, as the front month Soybean Oil futures closed 31 to 38 points higher. The cash B100 prices were reported steady in USDA’s weekly report, at $3.62/gal in MN and $5.47/gal in IL. 

Weekly CoT data showed managed money firms were buying soybeans during the week that ended 11/14. The 15.9k new longs left the group 87,913 contracts net long. Commercial soybean hedgers were adding shorts, strengthening their net short by 17.7k contracts to 165,888. Spec traders were shown with a 131,404 contract net long in soymeal, a +19.4k for the week via net new buying. Managed money firms were 3.7k contracts less net short in soy oil, at 6.6k contracts as of 11/14. 

BAGE raised their planted area for 23/24 soybeans in Argentina by 1% to 17.3m HA (~43m acres). They listed the crop at 18% planted.  Javier Milei is the new president of Argentina as voters tired of high inflation and wanted to try a new direction. He has to deal with a hostile Congress and some of his sweeping proposals such as adopting the dollar as the official currency and curbing grain export taxed may take a while to be a market factor. 

Jan 24 Soybeans  closed at $13.40 1/4, down 20 cents, currently up 12 3/4 cents

Nearby Cash   was $12.80 3/8, down 20 1/8 cents,

Mar 24 Soybeans  closed at $13.56 1/2, down 18 1/2 cents, currently up 12 cents

May 24 Soybeans  closed at $13.69, down 17 1/2 cents, currently up 11 cents