Soybean Futures Extend Double-Digit Gains Following Bullish USDA Acreage and Stocks Data

Soybean futures climbed 12 to 15 cents early Wednesday, extending the previous session’s advance of 4¾ to 12½ cents. Open interest rose by 4,137 contracts, driven primarily by new-crop months, while front-month contracts through September saw a combined reduction of 4,650 contracts. Thirty-one delivery notices were issued against July futures overnight. The cmdtyView national average cash soybean price increased 7¾ cents to $10.70. Soymeal futures traded steady to $2.10 higher, while soyoil futures declined 33 to 233 points, with pressure concentrated in nearby months. No delivery notices were posted for July soymeal, though 661 notices were recorded for July bean oil.

The USDA’s June Acreage report pegged 2024 soybean planted area at 85.36 million acres, marginally above trade expectations and 665,000 acres higher than the March Prospective Plantings estimate. Double-cropped acreage rose to 7%, up from 6% last year and 4% in each of the prior four years.

Quarterly Grain Stocks data showed June 1 soybean stocks at 1.061 billion bushels, exceeding the average analyst estimate of 1.049 billion bushels and representing a 5.26% increase year-over-year. March 1 stocks were revised upward by 19 million bushels.

Market attention now turns to Wednesday’s NASS Fats & Oils report, where traders anticipate a May soybean crush of 214.9 million bushels.

Canadian planting estimates released Tuesday by Statistics Canada showed soybean area at 5.961 million acres, a 3.1% increase from 2023. Canola acreage was estimated at 23.442 million acres, up 8.4% year-over-year.

Key Contracts (as of Wednesday morning):

• Jul 26 Soybeans: Closed $11.16¾, up 8¢; currently up 15¢
• Nearby Cash: $10.70, up 7¾¢
• Aug 26 Soybeans: Closed $11.24¼, up 5¢; currently up 11¾¢
• Nov 26 Soybeans: Closed $11.43¾, up 4¾¢; currently up 12¼¢
• New Crop Cash: $10.78½, up 5¼¢

Source link