Morning soy quotes are 5 to 7 cents in the red, and near their overnight lows, for the beans. Meal is also down by $2/ton, though BO futures are 16 points higher so far for the new month’s positioning. The Friday soy session closed with sharp losses, primarily in the meal. Preliminary open interest data from CME showed net new selling (+8,271 contracts) in the beans, but long liquidation (-7.8k contract) in the meal on Friday’s weakness. There were 59 deliveries against October meal over the weekend, all received by a Marex customer. There have thus far been zero deliveries vs. October BO. Soymeal futures settled over $10 in the red with 2.6% to 4.2% losses on the day. Soybean Oil futures ended the trade day with triple digit losses of as much as 2.1%.
Dalian No2 Soybean Prices were down 47 yuan (15c) into their holiday break @ (~$17.58/bu). Dalian will resume trade 10/9 after their Golden Week holiday.
Commitment of Traders data showed managed money funds closed existing soybean longs and added new shorts during the week that ended 9/26. That reduced the group’s net long in soybeans by 15.8k contracts to 30k. The weekly update put spec traders at 59,196 (+3.3k) contracts net long in soymeal and 35,050 (-12k) contracts net long in soy oil as of 9/26.
NASS Showed September 1 soybean stocks of 268.2 mbu., with 72 mbu on farms and 196 off farm. The trade was looking for only 244 million bushels, and the previous WASDE projection was for 250. Q4 disappearance was implied at 528.2 mbu, compared to 693.1 mbu last year. NASS also revised the 2022 crop size downward by 5.93 mbu on lower harvested area and a 0.1 bpa yield increase to 4.270 bbu, with 86.2m acres, and 49.6 bpa respectively.
Nov 23 Soybeans closed at $12.75, down 25 1/2 cents, currently down 5 3/4 cents
Nearby Cash was $12.09 1/2, down 25 5/8 cents,
Jan 24 Soybeans closed at $12.94 1/2, down 24 3/4 cents, currently down 6 1/2 cents
Mar 24 Soybeans closed at $13.10 1/4, down 21 1/4 cents, currently down 6 3/4 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
