Soybean prices gains over 0.75% on Friday while most of the grains complex sold off on economic and weather concerns. Beans are getting a boost from general optimism over current supply and demand fundamentals which also triggered technical buying. Export optimism remains despite China’s attempts to knock down prices by auctioning off state soybean reserves. Chinese purchases of Brazilian soybeans jumped 120% above March’s tally, and China also imported 60.3 million bushels of soybeans from the United States last month.
Soybeans Futures Highlights
- July futures rose 15.25 cents to $17.0575,
- August futures up 12.75 cents to $16.4325.
- Soybean basis bids were steady to firm on Friday, climbing 2 to 10 cents higher at three Midwestern processors and firming 4 to 7 cents higher at two other central U.S. locations.
- Preliminary volume estimates were for 157,439 contracts, inching slightly ahead of Thursday’s final count of 155,238.
Soybeans Technical Outlook
Soybeans tested the previous +1/8 again to rally just over the Tenkan as it remains in the pennant. Futures continue to pivot the $16 and $17/bushel benchmarks. Futures spat the Weekly +4/8 over $17.50/bushel twice. The flattening Kijun the magnet just under the 8/8. The weekly cloud and 50wma mingle around the $146/bushel benchmark.
China
China is planning to auction off another 18.4 million bushels of its state soybean reserves next Friday in an attempt to tamp down high prices and replenish local supplies. China has already concluded a flurry of similar auctions earlier this year.
In April, Chinese purchases of Brazilian soybeans jumped 120% above March’s tally, with 231.5 million bushels after some weather-delayed cargoes finally arrived. China also imported 60.3 million bushels of soybeans from the United States last month, roughly half of its U.S. deliveries in March.
Soybean Exports
According to the U.S. Agricultural Export Development Council, a new study confirms USDA-Foreign Agricultural Service export market development programs boosted ag exports by an average of $9.6 billion annually from 1977 to 2019, representing 13.7% of total ag export value, and returning $24.50 in additional net export revenue for every dollar spent on export promotion.
The study was commissioned by the U.S. Grains Council on behalf of members of the U.S. Agricultural Export Development Council to evaluate USDA’s Market Access Program and Foreign Market Development program. MAP and FMD, which are authorized by the farm bill, are vital to providing opportunities to develop or grow demand for U.S. products in foreign markets.
Developed by IHS Markit in cooperation with Dr. Gary Williams and Dr. Oral Capps at Texas A&M University, both experts on evaluating the economic performance of trade promotion programs, the study updated a 2016 edition also evaluating MAP and FMD, which are currently authorized by the 2018 Farm Bill. The new study also took a first look at the impact of investments through the Agricultural Trade Promotion (ATP) program.
According to the U.S. Agricultural Export Development Council, a new study confirms USDA-Foreign Agricultural Service export market development programs boosted ag exports by an average of $9.6 billion annually from 1977 to 2019, representing 13.7% of total ag export value, and returning $24.50 in additional net export revenue for every dollar spent on export promotion.
The study was commissioned by the U.S. Grains Council on behalf of members of the U.S. Agricultural Export Development Council to evaluate USDA’s Market Access Program and Foreign Market Development program. MAP and FMD, which are authorized by the farm bill, are vital to providing opportunities to develop or grow demand for U.S. products in foreign markets.
Ryan LeGrand, USGC and CEO, says USGC was glad to lead in this effort to demonstrate the long-term impact of the market export programs. “We know from our history that our work helps, as our mission says, improve lives. This study helps us put numbers to those outcomes for our organization and our whole sector within the agriculture industry,” he says.
Developed by IHS Markit in cooperation with Dr. Gary Williams and Dr. Oral Capps at Texas A&M University, both experts on evaluating the economic performance of trade promotion programs, the study updated a 2016 edition also evaluating MAP and FMD, which are currently authorized by the 2018 Farm Bill. The new study also took a first look at the impact of investments through the Agricultural Trade Promotion (ATP) program.
“Our work indicated that MAP and FMD have accounted for 13.7%, or almost $648 billion, of all the revenue generated by U.S. agricultural exports between 1977 and 2019,” says Williams. “The additional export revenue bolsters the entire U.S agricultural sector and creates a multiplier effect throughout the U.S. economy.”
Commodity Round Up
- Bloomberg Commodities Index declined 1.6% (up 29.4% y-t-d).
- Spot Gold fell 3.8% to $1,812 (down 1.0%).
- Silver sank 5.6% to $21.11 (down 9.4%).
- WTI crude increased 72 cents to $110.49 (up 69%).
- Gasoline jumped 5.3% (up 78%),
- Natural Gas fell 4.7% (up 105%).
- Copper dropped 2.2% (down 7%).
- Wheat surged 6.2% (up 53%),
- Corn slipped 0.4% (up 32%).
- Bitcoin sank $6,300, or 17.4%, this week to $29,800 (down 36%).
Source: USDA, Farm Progress
From The TradersCommunity Research Desk