Soybeans are sparking a rally on Thursday, with contracts up 7 to 10 cents at midday. CmdtyView’s national front month Cash Bean price is up 10½ cents at $9.58. Soymeal futures, meanwhile, are down $2.80 per ton on the session, while Soy Oil futures are up 179 points on the day.
Thursday morning’s Export Sales report showed 2.04 million metric tons (MMT) in soybean bookings during the week of October 31, sitting on the high end of the 1.2 to 2.2 MMT range of estimates. Although this marked a 3-week low, it was still 88.7% above the same week last year.
The largest buyer was China, with purchases totaling 1.223 MMT, followed by unknown destinations with 152,100 MT. Meal sales were tallied at 398,608 MT during the week of October 31, which was on the higher end of the 150,000 MT to 560,000 MT range of estimates.
Bean oil sales reached a massive 114,311 MT during that same week, exceeding the 0 to 60,000 MT estimates and marking the largest week of sales since November 2012.
With a smaller expected production—estimated down by 25 million bushels—U.S. ending stocks are expected to slip lower in the upcoming WASDE update. Analysts are looking for an 18 million bushel reduction to 532 million bushels, with estimates ranging from 475 to 585 million bushels. Globally, soybean stocks are seen tightening by 0.59 MMT to 134.06 MMT.
Looking at recent trade flows, soybean exports out of Brazil in October totaled 4.71 MMT, which is below the 5.6 MMT recorded in the same month last year. Chinese import data released for October showed soybean imports at 8.09 MMT, a 4-year high for the month. This brings the calendar year imports to 89.94 MMT, reflecting an 11.2% year-over-year increase.
As of Thursday, November 24, soybean futures are trading as follows:
– November 24 Soybeans: $10.01½, up 7 cents
– Nearby Cash: $9.58, up 10½ cents
– January 25 Soybeans: $10.14¼, up 10½ cents
– May 25 Soybeans: $10.38½, up 9¼ cents
*Disclaimer:* On the date of publication, Austin Schroeder did not hold positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data provided here are for informational purposes only. For more details, please view the Barchart [Disclosure Policy](https://www.barchart.com/disclosure). The views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/soybeans-rallying-thursdays-midday