Key Moments
- Soybean futures are higher by 12 to 15 cents early Wednesday after posting 4 ¾ to 12 ½ cent gains in the prior session.
- NASS reported 85.36 million soybean acres planted, 665,000 acres above the March Prospective Plantings report and slightly ahead of expectations.
- June 1 soybean stocks reached 1.061 bbu, topping surveyed analyst projections of 1.049 bbu and standing 5.26% above the same period last year.
Early Wednesday Strength in Soy Complex
Soybean futures are posting notable strength early on Wednesday, with prices trading 12 to 15 cents higher. The market continued to build on Tuesday’s upside move, when contracts finished the session with gains ranging from 4 ¾ to 12 ½ cents as futures bought the fact.
Open interest expanded by 4,137 contracts, driven primarily by new crop months. In contrast, front-month contracts through September saw a combined reduction of 4,650 contracts. Deliveries against July soybean futures continued, with another 31 delivery notices reported overnight.
The cmdtyView national average cash soybean price moved higher by 7 3/4 cents to $10.70. Soymeal futures traded from steady to $2.10 higher, while soy oil futures weakened, falling 33 to 233 points, with the front months leading the decline. There were no delivery notices issued overnight against July soybean meal, whereas 661 deliveries were reported against July bean oil.
US Soybean Acreage and Stocks Update
In its June Acreage report, NASS estimated that 85.36 million soybean acres were planted this spring. That figure came in slightly above market expectations and exceeded the March Prospective Plantings projection by 665,000 acres. Double-crop soybean area increased to 7%, compared with 6% the previous year and 4% in each of the four years before that.
The quarterly Grain Stocks report showed June 1 soybean stocks at 1.061 billion bushels. This exceeded the 1.049 billion bushels anticipated by analysts surveyed by Bloomberg by 12 million bushels and was 5.26% higher than the same period a year earlier. In addition, March 1 soybean stocks were revised upward by 19 million bushels.
Looking ahead to government demand data, traders are watching for Wednesday’s Fats & Oils report from NASS, with expectations for a May soybean crush of 214.9 million bushels.
Canadian Oilseed Acreage Expands
StatsCanada released acreage figures on Tuesday that pointed to growth in Canadian oilseed plantings. Soybean area was reported at 5.961 million acres, a 3.1% increase from the prior year. Canola plantings were estimated at 23.442 million acres, up 8.4% year over year.
Current Soybean Futures and Cash Market Snapshot
| Contract / Cash | Previous Close | Change at Close | Current Move |
|---|---|---|---|
| Jul 26 Soybeans | $11.16 3/4 | up 8 cents | currently up 15 cents |
| Nearby Cash | $10.70 | up 7 3/4 cents | – |
| Aug 26 Soybeans | $11.24 1/4 | up 5 cents | currently up 11 3/4 cents |
| Nov 26 Soybeans | $11.43 3/4 | up 4 3/4 cents | currently up 12 1/4 cents |
| New Crop Cash | $10.78 1/2 | up 5 1/4 cents | – |
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.
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