The soybean market demonstrated notable strength on Friday, with contract prices climbing between 13 and 21 cents by the end of the trading session. The nearby May contracts saw a significant increase of 65 ¾ cents compared to the previous Friday, while new crop contracts rose by 41 ¼ cents this week. According to CmdtyView, the current national front month price for cash soybeans reached $9.90 1/2, marking an uptick of 13 3/4 cents. Additionally, futures for soymeal rose between $1.70 and $2.50 per ton, while soy oil futures increased by 79 to 112 points.
In response to the heightened U.S. tariffs, China retaliated overnight, boosting the total tariff rate on all U.S. goods to 125%.
On the export front, a private sale of soybeans totaling 121,000 metric tons was confirmed for unknown destinations. Of this, 55,000 metric tons were related to the old crop, while 66,000 metric tons were designated as new crop.
The upcoming release of the National Oilseed Processors Association (NOPA) data on Tuesday is highly anticipated by the market. Analysts expect the March crush to reach 197.6 million bushels, slightly exceeding the figures from March 2024. Furthermore, soybean oil stocks are predicted to total around 1.617 billion pounds.
The Commitment of Traders report revealed that speculative traders added a total of 20,600 contracts to their positions in soybean futures and options, raising their total to 50,477 contracts as of Tuesday. In contrast, commercial traders reduced their net short position by 21,775 contracts, bringing their total to 81,365 contracts.
According to the USDA’s Export Sales report, total soybean export commitments reached 46.343 million metric tons by April 3. This figure represents 93% of the USDA’s projected exports of 1.825 billion bushels, aligning closely with the five-year average pace of 94%. Export shipments currently account for 84% of the USDA’s anticipated total, slightly ahead of the average shipping pace of 83%.
The soybean closing prices on May 25 were as follows:
– May Soybeans closed at $10.42 3/4, gaining 13 3/4 cents.
– Nearby Cash was recorded at $9.90 1/2, also up 13 3/4 cents.
– July Soybeans closed at $10.53, reflecting an increase of 16 1/4 cents.
– November Soybeans finished at $10.25 1/2, rising by 20 3/4 cents.
– New Crop Cash was reported at $9.64 0/1, increasing by 20 1/2 cents.
With these developments, the soybean market is experiencing fluctuations driven by various factors including export dynamics and agricultural reports. Keeping an eye on these trends can provide critical insights into future market direction and investment opportunities.
