Soybeans Offset Part of Thursday Sell Off

Soybean futures are double digits higher this morning,  working to rebound after a big swing day on Thursday. Soybean meal and BO are also higher. Soybean prices ended Thursday with double digit losses after dropping nearly 60 cents from fresh LOC highs set earlier in the session. March contracts printed a 67 1/2 cent intraday range on Thursday! The $16.33 high for March got to within 45 cents (2.6%) of last summer’s front month high – which was the July contract at the time. Soymeal futures went home $24/ton off their highs and $7.90 to $9/ton in the red. BO futures held on for the close, ending the day more than a penny off the highs but still 25 to 41 points in the black.

Weekly data reported old crop soybean bookings as 1.59 MMT for the week that ended 2/3. New crop sales were 894k MT, led by 316k MT to China and 433k to unknown. Soybean shipments were tallied at 1.3 MMT for the week and 37.66 MMT for the MYTD. 

Conab reduced its estimate of  Brazilian soybean production to 125.5 MMT yesterday. That was a major drop from 140 MMT last month and well below USDA’s new 134 MMT figure. Getting there, Conab raised Mato Grosso’s output by 649k MT on a 0.94 bpa yield bump – to 53.22 bpa. Parana’s yield was cut a steep 16.1 bpa to 33.6, RGDS was cut 18.3 bpa to 31.13, and the national yield dropped 5.75 to 45.97. Yesterday, USDA’s forecast was a 1.78 bpa trim. Planalytics revised their estimate to 50.41 bpa for Brazilian soybeans. 

Mar 22 Soybeans  closed at $15.74 1/4, down 20 1/2 cents, up 10 ¾ this morning

Nearby Cash  was $15.28 1/8 on Thursday, down 20 cents,

May 22 Soybeans  closed at $15.76 1/2, down 19 cents, up 11 ½ this morning

Nov 22 Soybeans  closed at $14.32 on Thursday, down 5 1/2 cents, up 10 ½ this morning

New Crop Cash  was $13.83 7/8 on Thursday, down 3 7/8 cents,