Beans Fade Double Digits

So far through the Monday midday, soybean futures are giving back 10 1/4 to 23 cents. The September contract is down the most on a near 2% drop of 31 cents. Sep is still a $1.34 premium to November. In meal, the board is down $1.70 to $4.30/ton for midday. Soybean oil futures are trading with midday losses of 5 to 18 points. 

Indonesia’s palm oil export tax was raised to ~$124/ton from $74/ton as the deputy for food and agriculture raised the CPO reference price to $930.02/ton. Indonesia will also require 11.03m kL of palm-based biodiesel to meet their B30 requirements. The prior allocation was 10.15m kL. 

The weekly Inspections report from USDA had 436,851 MT of soybeans shipped during the week of 8/25. That was down from 686.8k MT last week and compares to 387k MT shipped during the same week last year. 

Production estimates from StatsCan show the canola crop should reach 19.499 MMT, up from 13.8 MMT last year (revised up from their prior 12.6 MMT figure). The trade was looking for StatsCan to report 19.6 MMT. For soybeans, Canada is expected to harvest 6.4 MMT, up from 6.27 MMT last year, and above the 6.2 average trade guess. 

Friday’s CoT report showed managed money was buying soybeans through the week that ended 8/23, taking their net long 5k contracts higher to 104,471. Commercial bean traders added hedges through the week, with a 19.5k OI increase and a 8,540 contract stronger net short to 145.9k contracts. 

Sep 22 Soybeans  are at $15.78 1/4, down 27 cents,

Nearby Cash   is at $14.67 1/1, down 26 cents,

Nov 22 Soybeans  are at $14.39, down 22 1/4 cents,

Jan 23 Soybeans  are at $14.45, down 20 1/2 cents,

New Crop Cash   is at $13.88, down 21 3/4 cents,