Futures activity

  • Jan-22 soybean futures exited the board at $13.5675 per bushel. For Mar-22, futures ended last week lower at $13.6975, down by nearly $0.40 per bushel from the previous Friday.

S&D and fundamental factors

  • In last week’s WASDE, USDA raised U.S. soybean ending stocks by 10 million bushels to 360 million due to a likewise improvement to production—placing stocks to use at 8 percent (vs. 5.7 percent in 2020/21).
  • Domestic soybean oil production was raised by 175 million pounds, all of which was added to expected export demand. Globally, soybean oil ending stocks were increased to 4.19 MMT with a STU of 5.7 percent—down from 6 percent in 2020/21. Global vegetable oil stocks were also lowered to 23.73 MMT, down by nearly 1 MMT from the prior marketing year.
  • The Argentine Grain Exchange lowered its soybean production forecast to 40 MMT vs. USDA’s revised forecast at 46.5 MMT. South America has been experiencing record-setting heat with temps upward of 100˚F, leading to declines in estimated production for Argentina and Brazil.

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Source: 123rf.com
Posted by: Information Services
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