Soybean futures are 2 to 3 cents higher to start the Thursday session, with meal lower but soy oil trying to extend Wednesday gains. Preliminary OI data suggests net new buying was the main driver for Wednesday’s soybean gains, rising 13,582 contracts on the day. Going home, soybeans were up 1.7 to 2.2%. March beans closed with 30 cent gains. Soymeal also bounced back from Tuesday’s shellacking with 1.67% to 2.1% gains in the front months. The $8.20/ton gain in March was still not enough to overcome all of the Tuesday drop. Soybean oil futures rallied triple digits to close 2.72% to 2.84% stronger.
USDA’s Ag Attaché reduced their Brazilian soy crop estimate to 136 MMT on a 3.391 MT/HA yield. USDA’s official WASDE forecast last week was for 139 MMT and 3.44 MT/HA. The attaché cited heavy rains for flooding and disease in Mato Grosso as the main rationale for the yield cut. Record soybean production is still seen for that state. Unlike the WAOB’s official Jan forecast, Post saw the lighter output pull exports down to 88 MMT. That is well below the January WASDE forecast of 94 MMT forecast.
Mar 22 Soybeans closed at $13.91 1/4, up 30 cents, up 2 ¼ this morning
Nearby Cash was $13.48 1/8 on Wednesday, up 29 5/8 cents,
May 22 Soybeans closed at $14.00 3/4, up 29 3/4 cents, up 2 ¼ this morning
Nov 22 Soybeans closed at $13.04 1/2, up 20 cents, up 2 this morning
New Crop Cash was $12.46 ¾ on Wednesday, up 20 3/8 cents,
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