Soybeans Rally to Close in the Black

Soybean futures initially faded the Wednesday session with the corn and wheat markets, but prices turned back higher in the afternoon to close in the black for the day. Gains were limited to 3 ½ cents for the front months and Jan ’24 futures settled down by ½ cent. Soymeal futures finished the day with $0.90 to $4.30 losses across the front months.  Soy oil futures bounced 9 to 33 points on Wednesday. 

Canadian Canola Prices rallied on Wednesday with 2% gains to $660.70/MT. The Jan contract was printing new lows for the move last week, after falling from $800+ levels back in September.

China continues to make steps toward adopting GMO corn and soybeans. In a recent announcement the Ministry of Ag and Rural Affairs listed 26 seed companies that may produce and sell seeds in China. Note: all 26 listed companies are Chinese domestic. 

Brazilian farmers in Mato Grosso began harvesting soybeans with the earliest date on record, as 1% of the state (~300k acres) was harvested as of 12/27. Some farmers in Mato Grosso are still planting (/replanting) soybeans, as the government relaxed the soybean rust preventative restrictions earlier this year. 

Abiove adjusted their outlook on Brazil’s soy situation, including a 1.6 MMT production cut to 160.3 MMT (USDA @ 161). Bean exports were trimmed by 900k MT to 99.3 MMT (USDA @ 99.5), though crush was left alone at 54.5 MMT. Meal and oil production were 41.7 MMT and 11 MMT, compared to the WAOB’s Dec forecast of 43.2 MMT and 10.7 MMT respectively.

Jan 24 Soybeans  closed at $13.16 3/4, up 3 1/2 cents,

Nearby Cash   was $12.64 3/4, up 3 cents,

Mar 24 Soybeans  closed at $13.20 1/2, up 1 1/2 cents,

May 24 Soybeans  closed at $13.29 1/2, up 1 1/2 cents,