Soybeans Rallying Back on Wednesday with Rumors of Chinese Buying

Soybeans are trading with gains of  6 to 7 ½ cents across the front months. Futures rounded out the Tuesday session with contracts down 2 to 6 cents at the close. Open interest was up 5,743 contracts on Tuesday, as another 19,383 MT rolled out of the November. The cmdtyView national average Cash Bean price was down 2 1/2 cents at $12.25 3/4. Soymeal futures were $1.50 to $5.50 lower, with Soy Oil futures down 31 to 63 points. October futures expires on Wednesday.  

Reuters reports indicate China purchased 8-10 Panamax (~60,000 MT+) cargoes of US beans overnight.

The NASS Crop Progress report from Tuesday indicated 46% of the US soybean harvest was complete, now 4 percentage points behind normal. Condition ratings were unchanged at 57% gd/ex, with the Brugler500 index at 350.

The Tuesday Export Inspections report showed soybean shipments of 1.097 MMT (40.29 mbu) in the week of 10/8. That was up 7.8% from the same week last year but down 8.6% from the week prior. China was the largest destination of 649,252 MT, with 99,756 MT shipped to Mexico and 79,022 MT to Egypt. Shipments for the marketing year are now at 5.144 MMT (189.04 mbu) of soybeans, which is now 26.6% ahead the same period last year.

China’s Sinograin is set to auction off another 504,000 MT of imported soybeans on October 20, following the 209,904 MT sold this week. Chinese soybean imports totaled 11.88 MMT in September, down from the 12.14 MMT number from August

Nov 26 Soybeans  closed at $12.83 3/4, down 4 cents, currently up 7 1/2 cents

Nearby Cash  was $12.25 3/4, down 2 1/2 cents,

Jan 27 Soybeans  closed at $13.00, down 4 3/4 cents,

Mar 27 Soybeans  closed at $13.08 1/2, down 6 cents,

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.