Sign in Subscribe
Commodity futures

Soybean Futures Decline Amid Improving Weather Conditions

Strategic Insights

— 2 min read

Trading activity on the Chicago Board of Trade (CBOT) is expected to be lower, with soybean futures experiencing a decline of 3 to 5 US cents per bushel due to improving weather conditions in the US Midwest. Cooling temperatures in the past week may have resulted in a 1% to 2% decline in the US soy condition rating, according to USDA ratings released on Monday. However, warmer weather forecast for the region this week is expected to aid the crop's pod filling stage. On the other hand, the Beijing Grain Bureau plans to purchase 50,000 metric tons of US or Argentinian soybeans, while soymeal and soyoil futures are expected to be lower.

Key Takeaways:

  • CBOT soybean futures are expected to decline by 3 to 5 US cents per bushel at Monday's open.
  • Improving weather conditions in the US Midwest may result in a 1% to 2% decline in the US soy condition rating, according to USDA ratings.
  • The Beijing Grain Bureau plans to purchase 50,000 metric tons of US or Argentinian soybeans in a tender on Thursday.
  • Soymeal futures are expected to be US$0.50 to US$1.00 per short ton lower, reacting to the lower calls in soybeans.
  • Soyoil is called steady to 0.05 US cents per pound lower.
  • ProFarmer estimated this year's US soybean crop at 2.805 billion bushels, compared to the USDA's last forecast of 2.877 billion.
  • The bears are still in control of the CBOT Nov soybean contract, but a low may be in place, with a close above US$5.94 indicating a bullish trend.
  • The Beijing Grain Bureau also intends to purchase 4,400 tons of soyoil and 3,300 tons of refined soy salad oil.

Statistics:

  • CBOT soybean futures decline by 3 to 5 US cents per bushel at Monday's open.
  • 1% to 2% decline in the US soy condition rating due to cooling temperatures.
  • 50,000 metric tons of US or Argentinian soybeans to be purchased by the Beijing Grain Bureau.
  • US$0.50 to US$1.00 per short ton lower for soymeal futures.
  • 0.05 US cents per pound lower for soyoil.
  • 2.805 billion bushels estimated for this year's US soybean crop by ProFarmer.
  • 2.877 billion estimated for this year's US soybean crop by the USDA.
  • 4,400 tons of soyoil to be purchased by the Beijing Grain Bureau.
  • 3,300 tons of refined soy salad oil to be purchased by the Beijing Grain Bureau.

Sources:

  • Resource News International via COMTEX
  • Chicago Board of Trade
  • USDA
  • ProFarmer
  • Beijing Grain Bureau

Read more