Double Digit Drops Monday Morning

Soybean futures are 10 1/2 to 21 1/4 cents weaker this morning, with the old crop fading. Soybeans rallied off their overnight lows on Friday and went into the weekend 3 3/4 to 9 1/2 cents higher. Preliminary open interest showed modest short covering, but traders were definitely abandoning May a full month ahead of options expiration. For the week, May beans were 42 1/4 cents higher, and November was up by 30. Meal and oil futures also closed in the black with $2 to $3.20 gains in soymeal futures and 46 to 50 point gains in BO. USDA’s weekly Bioenergy reports showed B100 cash prices were firm at $6.57/gal during the week of 3/25. 

Soybean spec traders were 174,192 contracts net long as of 3/22. That was a 3,502 contract stronger net long, according to the CFTC, led by net new buying. Commercial bean traders were 2,769 contracts more net short through the week, to 298,311 contracts. CFTC reported managed money firms as 101,164 contracts net long in soymeal as of 3/22. That was a 1,995 contract lighter net long. Spec funds were 84,078 contracts net long in soy oil, a 5,093 contract reduction wk/wk. 

Trade ideas for Thursday’s USDA Grain Stocks report are averaging 1.908 billion bushels according to a Bloomberg poll. That would be up from 1.562 bbu last season. As for new crop acreage, also to be released next Thursday, the trade is looking to see between 86 and 92.2m acres of soybeans. The average pre-trade estimate is 88.9m acres compared to 87.2m planted in 2021. 

May 22 Soybeans  closed at $17.10 1/4, up 9 1/2 cents, currently down 21 1/4 cents

Nearby Cash  was $16.59 on Friday, up 12 1/4 cents,

Jul 22 Soybeans  closed at $16.88 1/2, up 6 1/4 cents, currently down 20 1/4 cents

Nov 22 Soybeans  closed at $14.96 3/4, up 3 3/4 cents, currently down 17 3/4 cents

New Crop Cash  was $14.46 ½ on Friday, up 3 1/4 cents,