Soybeans closed out the Friday session rallying 9 ¾ to 26 ½ cents across the board, led by the nearbys on bullish USDA data. March was 33 ½ cents higher on the day. CmdtyView’s national front month Cash Bean price was up 24 3/4 cents at $9.68 1/4. Soymeal futures were down 60 cents to $2.40/ton on the day, with March down $10.30 on the week. Soy Oil futures were rallying 211 to 282 points higher on the session, with March up 565 points this week. The Biden Administration released partial guidance on the 45Z tax credits today, but did not finalize any details.
This morning’s Crop Production report showed a 1 bpa drop to yield at 50.7 bpa for soybeans, well below estimates. Harvested acres were trimmed by 250,000 acres to 86.05 million, which added to the drop in production of 95 mbu to 4.366 bbu. With the smaller supplies heading in, the December 1 stocks total was tallied at 3.099 bbu, 112 mbu below estimates and up just 98 mbu from last year. The WASDE ending stocks projection was trimmed by 90 mbu to 380 mbu, 77 mbu below estimates. Most of the demand side of the balance sheet was left unchanged, with imports up 5 mbu.
On the world side, USDA left the Brazilian and Argentine numbers alone. Ending stocks for the world were tightened to 128.37 MMT below December by 3.5 MMT and well below estimates that were calling for an increase.
This morning’s Export Sales report tallied 2024/25 soybean sales at just 288,671 MT, coming in at a MY low and below the 0.4 to 1.3 MMT range of estimates in the week of January 2. The Netherlands purchased a total of 205,400 MT, with 171,800 MT sold to China. A total of 696,100 MT in net reductions was reported by unknown destinations, with most switched to a destination.
Meal sales totaled 144,918 MT in that week, the lowest for the marketing year. Soybean oil sales were tallied at 34,634 MT in the middle of the 20,000 to 60,000 MT estimates.
Jan 25 Soybeans closed at $10.13 1/2, up 21 1/4 cents,
Nearby Cash was $9.68 1/4, up 24 3/4 cents,
Mar 25 Soybeans closed at $10.25 1/4, up 26 1/4 cents,
Jul 25 Soybeans closed at $10.49 3/4, up 26 1/2 cents,
On the date of publication, Austin Schroeder 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. More news from Barchart- Grains and Oilseeds in Q4 and 2024- Where are they Heading in 2025?
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