Soybean Futures Retreat After Prior Session Rebound

Key Moments

Early Tuesday Trade and Monday’s Futures Performance

Soybean futures were under pressure in early Tuesday trading, posting losses of 9 to 11 cents after advancing in the previous session. On Monday, soybean contracts finished higher despite starting the day on a softer note, closing with gains ranging from 2 1/2 to 5 3/4 cents. Open interest in soybean futures increased by 4,738 contracts.

The cmdtyView national average cash soybean price moved higher, adding 6 3/4 cents to reach $10.66 1/4. In the product markets, soymeal futures finished Monday between 70 cents and $1 higher, while soy oil futures were mostly 14 to 44 points lower, with the July contract bucking the trend and ending 9 points higher. Crude oil futures settled $3.72 lower after the U.S. and Iran came to a peace deal over the weekend.

Crop Progress and Condition Ratings

The latest weekly Crop Progress report from NASS indicated that 95% of the U.S. soybean crop had been planted by 6/7, which was 2 percentage points ahead of the normal pace. Emergence reached 88%, running 6 percentage points faster than typical for this time.

Crop condition ratings improved modestly, with 66% of the soybean crop rated good to excellent, up 1 percentage point. The Brugler500 index also ticked 1 point higher to 368.

Crush and Soybean Oil Stocks Data

Updated NOPA data released in the morning showed that 208.785 million bushels of soybeans were crushed in May. This figure fell short of the average trade expectation and was near the low end of pre-report estimates. On a year-over-year basis, crush volume was up 8.27%, but it was 1.45% lower than in April.

Soybean oil stocks were reported at 1.735 billion pounds, coming in below estimates and representing a 10.9% decline from the previous month.

Export Inspections and Shipment Trends

Monday morning’s Export Inspections report showed soybean export shipments of 522,687 metric tons (19.205 million bushels) for the week of 6/11. Weekly shipments increased 26.8% from the prior week and were more than double the volume shipped in the same week a year earlier.

Egypt was the top destination with 218,249 MT, followed by 136,259 MT to China and 64,464 MT to Mexico. Cumulative marketing year shipments reached 36.693 million metric tons (1.345 billion bushels), which was 19.5% below the same point in the previous marketing year.

Futures and Cash Market Snapshot

Disclosure

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.