Soybeans facing downward pressure due to Bean Oil influence
Soybean Markets Face Pressure Due to Weaker Bean Oil Prices
In a weaker bean oil market this morning, soybean futures contracts dropped by 5 to 6 cents. Despite a late-session surge by bulls in the nearbys, up 3 to 4 cents, the overall sentiment remains bearish. New crop contracts showed a fractional mixed trend.
Thursday's preliminary open interest rose by 4,564 contracts. The Cash Bean price increased by 3 1/4 cents to close at $10.05. Soymeal futures spiked $1 to $2.70/ton, while Soy Oil futures dropped by 22 to 54 points.
Export Sales data, initially scheduled for release, has been postponed until today due to the Monday holiday. Analysts anticipate old crop bean exports to range from 150,000 to 500,000 MT, while new crop predictions stand at 0 to 250,000 MT. Soymeal sales are expected to total 150,000 to 450,000 MT, with bean oil seen in a range of 5,000 to 32,000 MT.
The weather forecast suggests a drier period through Sunday, with light showers predicted for the Northern Plains from the beginning of next week and extending eastwards until the middle of the week.
Market prices as of the closing on July 25:- Jul 25 Soybeans - $10.51 3/4, up 3 1/4 cents, currently down 5 3/4 cents.- Nearby Cash - $10.05, up 3 1/4 cents,- Aug 25 Soybeans - $10.48 1/2, up 3 1/4 cents, currently down 6 1/2 cents.- Nov 25 Soybeans - $10.37 1/4, down 1/4 cent, currently down 5 3/4 cents.- New Crop Cash - $9.75 1/1, down 1/4 cent.
On publication date, the author, Austin Schroeder, did not hold any positions in any of the mentioned securities. For more information, please refer to our website's Disclosure Policy.
Investors might consider diversifying their portfolio by looking into other financial markets, as the current weakening of the bean oil market could impact soybean prices. The bearish sentiment in the soybean market might offer opportunities for investors seeking to invest in futures contracts, particularly in the new crop contracts.
