Soybean Futures Trying to Sustain Gains

Front month bean futures are up by 1 cent following the release of USDA reports. Soybean meal futures are unchanged, while soybean oil futures are up 18 points. Estimates ahead of the WASDE report indicated a slight reduction was expected to the U.S. carryover, but the WASDE reported 19/20 carryout was UNCH at 475 mbu. USDA did reduce the expected cash average price for this year to $8.85 from $9.00. As for the world bean numbers, Brazil production was also firm, forecasted again at a record 123 MMT. Argentina was also UNCH from November’s estimate at 53 MMT. The USDA estimates 2019/20 world bean ending stocks at 96.4 MMT, which is up from last month. Soybean production from CONAB was up ~200,000 mo/mo, AT 121.1 MMT. China’s National Bureau of Labor Statistics reported soybean production at 18.1 MMT, following a reported 11% uptick in area planted. USDA adopted that increase, and boosted expected Chinese ending stocks by the same 1 MMT.

Jan 20 Soybeans are at $8.98 1/4, up 1 cent,

Mar 20 Soybeans are at $9.12 3/4, up 1 cent,

May 20 Soybeans are at $9.26 1/2, up 1 cent,

Jul 20 Soybeans are at $9.39 1/4, up 1/2 cent,

Dec 19 Soybean Meal is at $296.70, unch,

Dec 19 Soybean Oil is at $31.54, up $0.18

--- provided by Brugler Marketing & Management

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