Soybeans Posting Midday Gains Despite Larger Stocks, More Acres and Product Weakness

Soybeans are buying the fact after selling the rumor leading up to the USDA reports on Monday. Tuesday’s gains are 4 to 7 cents at midday. July futures had 31 delivery notices on first notice day. The cmdtyView national average Cash Bean price is up 4 3/4 cents at $10.67. Soymeal futures are down 60 cents to $1.60, with Soy Oil futures down 197 to 235 points. Increased canola acreage in Canada is adding pressure to the latter. There were no deliveries against July soybean meal, with 729 deliveries against July bean oil.

NASS reported 85.36 million soybean acres planted this spring in their June Acreage report, coming in slightly above estimates and 665,000 acres higher than in the March Prospective Plantings report. Double crop acres ticked up to 7%, from 6% last year and 4% in each of the prior 4 years. 

June 1 soybean stocks were up to 1.061 bbu in the quarterly Grain Stocks report. That was 12 above analysts surveyed by Bloomberg looking for 1.049 bbu. The March 1 stocks were revised higher by 19 mbu.  

Crop Progress data from NASS showed 96% of the US soybean crop emerged by 6/28, up 1% from normal, with 19% emerged and 4 percentage points faster than normal. The crop was also reported at 4% setting pods. Condition ratings were down 1% at 65% gd/ex, with the Brugler500 index falling 4 points to 365. The main deterioration was seen in IN (-12), IL (-9), MO/ND (-3). Improvement was noted in NE/OH (+6), IA (+4), and MN (+3).

Canadian acreage estimates were also released this morning, with StatsCanada showing 5.961 million acres of soybeans, a 3.1% increase year/year. Canola acreage was pegged at 23.442 million acres, up 8.4% from a year ago.

Jul 26 Soybeans  are at $11.15 1/2, up 6 3/4 cents,

Nearby Cash  is at $10.67, up 4 3/4 cents,

Aug 26 Soybeans  are at $11.23 3/4, up 4 1/2 cents,

Nov 26 Soybeans  are at $11.43 1/4, up 4 1/4 cents,

New Crop Cash  is at $10.76, up 3 3/4 cents,