Soybean Futures Close in the Black

At the closing bell for the midweek session soybean prices were 9 to 18 1/4 cents higher. Soybeans had set new contract highs during the early session rally. For July that was $17.58, and November that was $15.73. Soymeal futures turned red during the midweek session, closing the day down by $1.80 to $2.10/ton. Soy oil futures closed with 136 to 150 points gains. 

Export Sales estimates for US soybeans range 100k to 500k MT for old crop and range 200k to 700k MT for new crop. Survey results show the trade is looking for between 150,000 and 300,000 MT of soymeal sales from the week that ended 6/2. BO bookings are expected to be below 25k MT in Thursday’s USDA weekly report. 

Pre-report estimates show the average trade guess for new crop soy production would be a 4.641 bbu crop in the Friday report. That would be up 1.5 mbu from May if realized, though the full range of estimates is from 4.595 to 4.685 bbu. Yields are expected to stay within a half a bushel of USDA’s May 51.5 bpa. 

CONAB put their June estimate for soybean production @ 124.268 MMT. That was up slightly from last month’s 123.829 MMT figure. Yields were hardly lifted implying a larger harvested area. Traders estimate USDA will reduce Brazil’s soy crop by 300k MT on average to 124.7 MMT. Pre-WASDE estimates look for USDA to lift the Argentina soy crop by 200k MT to 42.2 MMT.

Brazilian officials are considering a biodiesel blend of 15% for later this year, up from the current 10% requirement, citing trucking fuel shortages domestically – according to wire reports. Responding to the news, Abiove suggests current production and stocks would allow for a 12% blend, though to reach 15% they would need to crush 3 MMT more beans per year, or import soy oil. 

The EU has brought in 13.56 MMT of soybeans so far this season through June 5th. That is down from 14.29 MMT during 20/21. 

Jul 22 Soybeans  closed at $17.40, up 11 3/4 cents,

Nearby Cash  was $16.98 1/2, up 10 cents,

Aug 22 Soybeans  closed at $16.62 3/4, up 9 cents,

Nov 22 Soybeans  closed at $15.68, up 18 1/4 cents,

New Crop Cash  was $15.14, up 18 cents,