Bean Oil Pressuring Soy Complex Lower as Inclusion Rates Fall

Soybeans are posting double digit weakness on Tuesday, with pressure coming from the product values. Soybean futures price limits are going to trimmed by a dime to 85 cents on Wednesday, with the CME. Soymeal is fading off the early strength, with contracts now down $6.70 to $7/ton. Soy Oil is in freefall mode at midday, down another 118 to 144 points and hitting new contract lows. 

EIA reported that just 888 million lbs of bean oil was used in biodiesel production in February. That was down from 960 million lbs in January and was the lowest monthly use total since December 2022. Meanwhile, tallow and yellow grease inclusion has been rising for the last several months.

Today is FND for May futures deliveries, and deliveries against May BO were heavy at 2,101 contracts.  Most were put out by JPM clients, with Bunge the largest stopper. There were 222 meal contracts issued, and May soybean deliveries totaled 533 contracts. Of those 401 came from Bunge. 

Producers were busy getting the crop in the ground last week with 18% of the US soybean acres planted by 4/28, a 10% move on the week. The average planting completion for the week over the last 5 years is 10%. Only ND had no reported planting pace, which is normal, with IN and NE the only states reported as lagging, by 1%. IL was 8% above normal, with IA at 25% and more than double the 12% average pace. MN was 9% ahead of schedule, with MO 15% ahead of the average pace.

May 24 Soybeans  are at $11.42, down 18 3/4 cents,

Nearby Cash  is at $10.93 3/4, down 20 1/2 cents,

Jul 24 Soybeans  are at $11.59 3/4, down 22 1/4 cents,

Nov 24 Soybeans  are at $11.57, down 21 cents,

New Crop Cash  is at $10.92 1/2, down 21 1/2 cents,