March Beans Back Over $12

After the rally to start the week, soybeans are currently another 3 to 7 cents stronger and pushing March back over the $12 mark. Front month soybean futures ended the Monday session with 5 ¼ to 7 ¾ cent gains. Some net new buying interest appeared, with preliminary open interest rising 13,330 contracts for the day.  Soymeal futures closed with $2.40 to $4.30 gains. Soy oil futures closed 46 to 60 points higher on the day. Preliminary open interest jumped sharply in the March and May soybean meal contracts, and was up 16,194 contracts overall. Dalian market will be closed this Friday (9th) for a full week for the Chinese New Year. 

The weekly Export Inspections report showed 1.426 MMT (52.4 mbu) of soybeans were shipped during the week that ended 2/1. That was up from 913k MT the week prior, but was 25% below the volume for the same week last year. China was the top destination. USDA reported the season’s total shipment at 29.12 MMT (1.07 bbu), which remains 24% behind last year and 17% behind the 5-yr average pace. 

Analysts are expecting USDA to raise soybean carryout by 4.6 mbu to 284.6 mbu on average ahead of the Feb USDA reports. The full range of estimates runs 245 to 310 mbu for Thursday’s report. Pre-report estimates anticipate a 3.3 MMT cut to Brazilian output partially offset by an 800k MT larger Argentinian crop. 

Mar 24 Soybeans  closed at $11.96 1/4, up 7 3/4 cents, currently up 6 3/4 cents

Nearby Cash   was $11.43 1/2, up 7 7/8 cents,

May 24 Soybeans  closed at $12.04 3/4, up 6 1/2 cents, currently up 6 cents

Jul 24 Soybeans  closed at $12.14 1/4, up 6 cents, currently up 7 cents