Soybeans Retreat from Peak, Ends Friday with Slight Increase

Soybean Market Update: Modest Gains by Week's End

This week, soybean futures retreated from their midday peaks, with front-month contracts finishing the session up between 1 and 1.5 cents. Over the week, the March contract advanced by 16.75 cents. The national average cash price for soybeans, as reported by cmdtyView, edged up by 1.5 cents to reach $9.90 3/4.

Soymeal futures wrapped up Friday with the January contract slipping by 40 cents, while other months posted gains ranging from 10 cents to $1.80. The March soymeal contract rose $7.70 for the week. Soy oil futures also saw upward movement, climbing 15 to 23 points on the day, with March closing 39 points higher for the week.

Export Activity and International Demand

The USDA announced a private sale of 198,000 metric tons of soybeans to undisclosed buyers earlier today. Additionally, market sources reported that China purchased another 10 shipments of U.S. soybeans for delivery between April and May.

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USDA Export Sales and Market Data

According to the latest USDA export sales report, U.S. soybean export commitments totaled 28.576 million metric tons as of January 1, with 29% attributed to the same week in the 2024/25 marketing year. This represents 64% of the USDA's annual export target, which is below the typical pace of 82%. Actual shipments have reached 16.347 million metric tons, down 45% from last year and accounting for 37% of the USDA's projection, trailing the average of 57%.

China's state-owned stockpiler, Sinograin, has announced an auction for 1.1 million metric tons of imported soybeans (from 2022 to 2025) scheduled for January 13.

Looking ahead, the Quarterly Grain Stocks report is set for release on Monday. Analysts surveyed by Reuters anticipate soybean stocks as of December 1 to total 3.25 billion bushels, with estimates ranging from 2.95 to 3.445 billion bushels.

Commitment of Traders data reveals that speculative traders reduced their net long position in soybeans by 26,845 contracts for the week ending January 6, bringing the net long to an 11-week low of 57,717 contracts (futures and options combined).

Recent Soybean Closing Prices

• January 26 Soybeans closed at $10.48 1/2, up 1 1/2 cents
• Nearby Cash settled at $9.90 3/4, up 1 1/2 cents
• March 26 Soybeans finished at $10.62 1/2, up 1 1/4 cents
• May 26 Soybeans ended at $10.74 1/2, up 1 1/4 cents