Soybean, Soyoil and Soymeal Prices Fall With Broad Commodity Selloff

Soybean prices were hit by a general financial market malaise Friday after the Omicron variant hit the airwaves and a broad range of commodities. Soybean prices closed around 1% lower. Soyoil futures were much weaker falling 3% lower, with soymeal losing around 0.5%.

Soybeans

Soybean prices closed around 1% lower. January futures fell 13 cents to $12.53 and March futures fell 13.75 cents to $12.6350. Soyoil futures were much weaker falling 3% lower, with soymeal losing around 0.5%.

Soybean basis bids were steady to slightly firm after tracking 1 to 2 cents higher at three Midwestern locations on Friday.

Soybeans Weekly Chart via KnovaWave

Preliminary volume estimates were for 127,227 contracts, trending slightly higher than Wednesday’s final count of 114,240.

Soybean Sales

Soybean sales firmed 13% ahead of last week’s pace and the prior four-week average, to 57.5 million bushels. That was toward the higher end of trade estimates, which ranged between 33.1 million and 68.0 million bushels.

Cumulative totals for the 2021/22 marketing year remain moderately behind last year’s pace, with 691.1 million bushels.

Soybean Exports

Soybean export shipments tipped 4% lower week-over-week and tilted 18% below the prior four-week average, to 82.8 million bushels. China was by far the No. 1 destination, with 51.8 million bushels.

Brazil

Brazil’s Agroconsult is now predicting the country’s 2021/22 soybean production will reach 5.302 billion bushels, which is easily a record-breaking effort, if realized.

Brazilian soybean acres are expected to climb another 4.2% higher this season. In Argentina, the Buenos Aires Grains Exchange reports that soybean plantings for the 2021/22 season have reached 39%, with an initial production estimate of 1.617 billion bushels.

China Hogs

Through the end of October, China’s hog herd moved 6.6% higher year-over-year but slumped 2.5% lower from a month ago, per the latest data from the Ministry of Agriculture and Rural Affairs.

Soyoil Demand

Egypt purchased 30,000 metric tons of soyoil in an international tender that closed yesterday and is for arrival during the second half of January.

Source: USDA, Farm Progress

From The TradersCommunity Research Desk