Questions surrounding U.S. soybean production potential for 2023/24 remain
Soybean futures contracts continue to show an enormous amount of volatility. After rallying by nearly $1 per bushel on the last week of June’s surprise acreage reduction, Aug-23 soybeans closed at $14.27 per bushel, down by about 40 cents per bushel over the week. Nov-23 soybeans closed just under $13.18 per bushel.
Soybean oil futures continue their upward trajectory despite a likely technical correction in the last two trading sessions. Aug-23 closed at $0.6257 per pound; Oct-23 closed at $0.5890 per pound.
The U.S. soybean crop rating fell another percentage point during the last week of June, now showing 50 percent rated good to excellent (compared to 63 percent last year). Podsetting has begun in the southern portions of the Belt, with at least 1 percent doing so as far north as Minnesota.
Soybean sales were lower at 187,800 MT for last week vs. 244,000 MT the week prior.
Rainfall has improved in the Midwest with rain touching the most adversely impacted regions, including Illinois and Iowa. The extended forecast suggests ongoing rain events for the next three weeks, hopefully getting the crop through pollination. Nonetheless, drought conditions persist.
The full version of this commentary appeared on our IQ platform Jul. 7, 2023. Further information, statistics, and pricing for the soy complex are available to IQ subscribers. Learn more about becoming a subscriber.
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