The soybean market experienced an impressive surge on Wednesday, with gains ranging from 19 to 21 points. According to CmdtyView, the national front month Cash Bean price rose by 20 3/4 cents, reaching $9.59 3/4. In tandem with this, soymeal futures experienced an increase of 90 cents to $3.50 per ton, while Soy Oil futures climbed between 120 and 141 points.
During the latter part of Wednesday’s trading session, President Trump revealed a 90-day suspension of tariffs on specified countries, excluding China. The overall tariff rate was maintained at 10% across other nations, with a significant increase for China, where tariffs were raised to 125% on all imports.
In addition to these developments, the USDA disclosed a private export sale of 198,000 MT of soybeans to undetermined destinations on Wednesday morning. Analysts project the soybean sales for the 2024/25 period to fall between 200,000 and 700,000 MT during the week of April 3, ahead of the Export Sales report scheduled for Thursday. For new crops, estimates range from 0 to 50,000 MT. Soybean meal sales are anticipated to range between 75,000 and 470,000 MT, while bean oil sales are expected to be between 5,000 and 37,000 MT.
On Thursday, the USDA will release an update on U.S. and global balance sheets through the monthly WASDE report. A Reuters analyst survey suggests that the U.S. carryout may be recorded at 379 million bushels, slightly lower than last month’s tally of 380 million bushels. As for South America, minimal changes are anticipated, with Argentina potentially seeing a decrease of 0.21 MMT to 48.79 and Brazil’s estimates increasing by 0.11 to 169.11 MMT.
Here’s how the soybean futures closed on May 25:
– May soybeans finished at $10.12 3/4, marking an increase of 20 cents.
– Nearby cash closed at $9.59 3/4, rising by 20 3/4 cents.
– July soybeans reached $10.23 1/2, up by 19 1/2 cents.
– November soybeans settled at $9.97, showing an increase of 19 1/4 cents.
– New crop cash stood at $9.36 1/2, which is up by 19 1/4 cents.
This session’s activity highlights the evolving dynamics of the soybean trade, significantly influenced by both domestic and global factors, including government policy and export performance. The anticipation surrounding the upcoming USDA reports further underscores the market’s attention to data affecting supply and demand.
Overall, with these recent movements and expectations in the commodity market, stakeholders in the soybean industry remain vigilant, adapting to changes that can impact pricing and trade strategies. The upcoming reports are set to provide critical insights for traders and investors, as they navigate the complexities of the agricultural commodities landscape.
