Ag Valley Coop -

Soybeans Back Off, But Still up 9 to 13 Cents

Alan Brugler - Barchart - Mon May 03, 12:27PM UTC

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Soybeans gapped higher on the Sunday night open. They are currently 9 to 13 higher, but well off the overnight highs. Soybean closed near the highs on Friday with 19 3/4 to 32 cent gains. Preliminary open interest shows short covering, dropping 1,965 contracts. New crop November contracts ended the week 7 1/4 cents below the open, but still rallied 71 3/4 cents net for the month. Soybean meal futures closed the session $2.80 to $3.40 higher, with May the strongest. BO futures rose into the weekend with 247 to 250 point gains as July closed at the limit.

CME’s new limits are in effect, which will be $1/bu for beans, $30/ton for meal, and 3.5 cents for oil – though May contracts trade with no limits through the delivery process. CME reported 66 deliveries issued for May soy futures again, with RJO, Marex and ADMIS clients stopping. There were 9 deliveries against May soy meal and 488 against May soy oil. Notably, the ADM house account was on the receiving end of 427.

The weekly CoT report showed managed money funds were net buyers for soybeans during the week ending 4/27. The group extended their net long by 7,470 contracts to 180,014. That is the most net long that spec funds have been in 17 weeks. Commercials were reported at 283,625 contracts net short on the 27th. That was 6,847 contracts more net short wk/wk accompanied with a 38k contract drop in commercial OI.

The CFTC report showed soymeal specs extended their net long by 6,039 contracts to 54,086. In soybean oil spec funds expanded their net long to 92,587 contracts as of 4/27.

Traders surveyed ahead of USDA’s monthly Fats and Oils report (this PM) expect 188.4 mbu of soybeans were processed in March. Trade estimates for soybean oil stocks are averaging 2.317 billion pounds. Trade ideas for US soybean planting progress are 18-20% as of Sunday, well ahead of the 11% average pace and close to last year’s 21%.

May 21 Soybeans closed at $15.71, up 28 1/2 cents, and up 11 1/2 this morning

Jul 21 Soybeans closed at $15.34 1/4, up 32 cents, and up 9 1/2 this morning

Nearby Cash was $15.45 2/3 on Friday , up 31 5/8 cents,

Nov 21 Soybeans closed at $13.39 3/4, up 21 cents, and up 13 3/4 this morning

New Crop Cash was $12.90 4/7 on Friday, up 20 7/8 cents,

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