Double Digit Gains for Beans

The last trade day of the week moved soybean futures 6 3/4 to 14 3/4 cents higher. Old crop prices led the way, widening the nearby premium to $1.83 from July to Nov. Soymeal futures went home $2.50 to $4.60 higher on the day.BO prices also squared up for the week’s end with 68 to 140 point gains. Despite the triple digit bounce, July oil was still down 2.86 c/lb for the week.  

CFTC reported managed money firms were 147,335 contracts net long as of the 5/17 settle. That was a 16,674 contract stronger net long from the week leading into the WASDE report, mostly fueled by new spec buying. Commercial bean traders added 5k new shorts for a 4,134k contract stronger net short of 233,528. In soymeal, the weekly CoT report showed managed money closed 11.8k existing longs and sold 4.56k contracts short for their weakest net long since December at 35,923 contracts. As of 5/17 managed money traders were 86,237 contracts net long in soy oil, a 2,139 contract lighter net position wk/wk. 

Trade sources indicate that Indonesia will begin allowing palm oil exports again starting Monday. Shippers will still have to divert 20% of production to the domestic market. 

The Buenos Aires Grains Exchange estimated soybean harvest at 78% complete compared to 65% last week. 

Jul 22 Soybeans  closed at $17.05 1/4, up 14 3/4 cents,

Nearby Cash  was $16.73 3/8, up 13 1/2 cents,

Aug 22 Soybeans  closed at $16.41 3/4, up 11 1/4 cents,

Nov 22 Soybeans  closed at $15.21 3/4, up 7 1/4 cents,

New Crop Cash  was $14.78 1/2, up 7 1/2 cents,