Soy prices are currently trading 5 to 9 cents weaker in the beans, $1.80/ton lower in the meal and 30 points lower in the oil to start the new week of trading. Soy oil led the rally into the weekend with another triple digit session on Friday. Strong palm oil interest helped. Beans were 2 ¾ to 3 ¾ cents higher on the day, which left May up by 14 ¼ cents for the week and Nov 17 cents higher. CME’s OI data showed a 9.9k contract increase on Friday, with new buyers for May, July, and Nov. Options open interest also increased on Friday with 9.8k contracts added including 5.3k new calls and 3.5k new puts. Soy Oil futures were another 2% higher on Friday and more than 3 c/lb higher for the week. Soymeal futures closed in the red on Friday with $2 to $2.50/ton losses, leading May to a $6.70 loss on the weekly chart.
Weekly CFTC data showed managed money traders were short covering during the week that ended 3/12. The 13k fewer shorts in play, alongside the 3.8k new longs, reduced their net short to 155k contracts. Commercial soybean hedgers were adding positions during the week. The group added 26.5k new shorts and 9.3k new longs for a 53k contract net long as of the Tuesday settle. Managed money traders were reducing exposure in soymeal during the week, though the long liquidation offset the short covering which grew their net short to 50.9k contracts. Spec funds were 33,410 contracts net short in soybean oil after a major position shift for the week. The group closed 15.9k existing shorts and added 13.2k new longs during the week.Â
NOPA members reported crushing 186.2 mbu in February which was more than expected and a new record for the month. It was also up 0.2% from January. Soy oil stocks expanded to 1.69 billion lbs compared to 1.51 billion last month.Â
USDA’s Ag Attache reduced the Argentina soy crop estimate to 49.5 MMT.Â
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May 24 Soybeans  closed at $11.98 1/4, up 3 cents, currently down 5 1/2 cents
Nearby Cash  was $11.42 3/4, up 3 1/2 cents,
Jul 24 Soybeans  closed at $12.12 1/2, up 2 3/4 cents, currently down 5 3/4 cents
Nov 24 Soybeans  closed at $11.90 3/4, up 3 3/4 cents, currently down 7 3/4 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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