Soybean prices declined on Tuesday, with additional downward pressure from the meal market

Soybean Market Update: Prices Decline Amidst Mixed Futures

Soybean prices are experiencing a drop on Tuesday, with losses ranging from 9 to 11 cents. The national average cash price for soybeans has decreased by 11 cents, settling at $9.66 1/2. Soymeal futures are contributing to the downward pressure, falling by $36 to $6.80, while soy oil futures have gained between 90 and 97 points. On Friday night, 26 soybean delivery notices were issued, along with 30 for January bean oil.

Recent Export Activity

The USDA announced a private sale of 168,000 metric tons of soybeans to China earlier today. Additionally, 152,404 metric tons were reported sold to Mexico.

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Production and Stock Reports

According to Monday's Crop Production report, the NASS soybean yield remains at 53 bushels per acre, unchanged from November. Harvested acreage saw a slight increase to 80.4 million acres, and total production edged up by 9 million bushels to 4.262 billion bushels. The Quarterly Grain Stocks report indicates that as of December 1, soybean stocks reached 3.29 billion bushels, which is 190 million bushels higher than the previous year.

The latest WASDE report incorporated this production adjustment, with the USDA lowering export estimates by 60 million bushels to 1.575 billion bushels and increasing the crush forecast by 15 million bushels to 2.57 billion bushels. As a result, U.S. ending stocks rose by 60 million bushels to 350 million bushels. Additionally, the USDA raised its projection for Brazilian soybean output by 3 million metric tons, now estimating 178 million metric tons.

Global Trade and Policy Developments

Late Monday, President Trump announced a potential 25% tariff on any nation conducting business with Iran, with China being the primary focus. China has yet to respond to this statement.

On Tuesday, Sinograin sold 1.1 million metric tons of soybeans from China’s state reserves at auction.

Current Soybean Prices

• January 26 Soybeans: $10.23 3/4, down 9 1/4 cents
• Nearby Cash: $9.66 1/2, down 11 cents
• March 26 Soybeans: $10.38 1/4, down 10 3/4 cents
• May 26 Soybeans: $10.51 3/4, down 10 cents