Soy complex: Different strokes for different products
Soy complex price action lately has been a mixed bag, with each component’s market behaving a bit differently from the others. Soybean futures were relatively tame recently, moving within just a few cents per bushel in trading throughout the week. Conversely, soybean meal: After prices rallied in late March, meal futures have dropped by nearly 10 percent since the beginning of April (May-20 contract). Soybean oil futures appear to have bottomed and have risen by about 1.25 cents since Apr. 1.
USDA released the April WASDE on Thursday, Apr. 9, and presented higher ending stocks for 2019/20 soybeans and soybean oil. For soybeans, the change was a result of reduced export demand more than offsetting slightly higher crush, leading to a 55 million bushel increase to ending stocks, now pegged at 480 million bushels. The soybean oil balance sheet was adjusted in every use category—biodiesel, other industrial, and exports—amounting to a 315 million pound increase to ending stocks.
U.S. soybean stocks to use
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