Soybean Prices Reach Highest Level in Nearly Two Months
US cash soybean prices surged to a nearly two-month high on Monday, boosted by a broad rally in commodity futures markets. The national cash price index maintained by the Minneapolis Grain Exchange listed US elevator bids for soybeans at an average of $5.49 per bushel, the highest level since March 3. The sharp rise in nearby CBOT soybean futures drove the daily index gain of 9 3/4 cents.
Key Takeaways:
- US cash soybean prices reached a nearly two-month high of $5.49 per bushel, with the national cash price index maintained by the Minneapolis Grain Exchange.
- The sharp rise in nearby CBOT soybean futures drove the daily index gain of 9 3/4 cents.
- Despite small declines in bean basis, a broad rally in commodity futures markets supported the increase in cash soybean prices.
- Experts considered cash premiums surprisingly resilient despite farmers selling actively due to the inflation-fueled futures rally.
- Most impressive was how well the market absorbed the huge volume of cash business, with the hedge volume being the most seen in months.
- Spring wheat premiums countered the bearish basis trend, rising by an average of 1/4 cent nationwide.
Statistics:
- US cash soybean prices averaged $5.49 per bushel, a 9 3/4 cent increase.
- Nearby CBOT soybean futures surged, contributing to the rally in cash soybean prices.
- Hedge volume reached a multi-month high, with the market absorbing the huge volume of cash business.
- Grain futures continued to climb overnight, with trading screens showing cash contract gains ranging from 3-6 cents for wheat and soybeans.
Sources:
- Dow Jones Commodities News via Comtex (May 01, 2006)
- Minneapolis Grain Exchange (current cash price index)
- Country Hedging analyst Phyllis Nystrom
- Benson Quinn Commodities soybean market analyst Mark Hanson
- Farm Futures analyst Arlan Suderman
- The Weather Channel (US grain belt weather forecast)
- Freese-Notis Weather/Weather Trades, Inc. of Des Moines, Iowa (corn planting progress)