Highlights;
- Soybeans saw mixed trade, with November futures down 4 cents on the week, while the national average cash price rose to $9.79, up 5 3/4 cents.
- Soymeal futures were volatile, with September dropping $2.70 but other months gaining, while soy oil futures declined 25-33 points, with October down 34 points on the week.
- CFTC data showed managed money funds increasing their small net long position in soybeans by 20,815 contracts, while commercial net short positions rose by 10,364 contracts as of August 26.
- Export sales data indicated old crop soybean commitments at 100% of USDA forecasts, while new crop business lagged 28.8% behind last year, with crush data and bean oil stocks set for release next Tuesday.
Soybean Market Update: Friday Close and Key Insights
Market Overview:
Soybeans ended Friday with a stronger trade, rising 5 to 8 ½ cents, while November futures declined 4 cents for the week. The cmdtyView national average Cash Bean price rose by 5 ¾ cents to $9.79. Meanwhile, soymeal futures saw mixed movement, with September dropping $2.70 but other months gaining 50 cents to $4.60. Soy oil futures also declined, falling 25 to 33 points, with October down 34 points for the week. The market will observe the Labor Day holiday on Monday, reopening for the Tuesday session on Monday night.
CFTC Positioning:
As of Tuesday, managed money funds slightly increased their net long position in soybean futures and options by 20,815 contracts, totaling 20,818 contracts. Commercial traders also expanded their net short position by 10,364 contracts, reaching 124,515 contracts as of August 26.
Export Sales and Crush Data:
Export sales data shows old crop soybean commitments at 50.869 MMT, meeting 100% of the USDA forecast but trailing the 103% average pace. New crop sales lagged at 7.228 MMT, down 28.8% from last year, with limited buying activity from China.
Monthly crush data, set for release next Tuesday, is expected to show 207.1 million bushels of soybeans processed in July, with estimates ranging from 204.8 to 212 million bushels. Bean oil stocks are projected at 1.895 billion pounds.
Biodiesel Production:
EIA data revealed that 1.045 billion gallons of soybean oil were used for biodiesel production in June, marking the highest level in six months.
Futures Prices:
- Sep 25 Soybeans: Closed at $10.36 ¾, up 8 ½ cents.
- Nearby Cash: $9.79 1/1, up 5 ¾ cents.
- Nov 25 Soybeans: $10.54 ½, up 6 ½ cents.
- Jan 26 Soybeans: $10.72 ½, up 5 ¾ cents.
- New Crop Cash: $9.74 ¼, up 6 ¼ cents.
Disclaimer:
At the time of publication, Austin Schroeder held no direct or indirect positions in the securities mentioned in this article. The information provided is for informational purposes only.
Additional Resources:
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Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
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Source: https://www.nasdaq.com/articles/soybean-bulls-push-back-friday
