Futures activity

  • Soybean futures demonstrated their greatest gains in about 18 years last week as weather concerns moved into the market. Aug-22 soybean futures increased by $1.64 per bushel last week to close at $16.37 per bushel on Friday. Nov-22 futures increased 9 percent over the week to close at $14.685 per bushel.

S&D and fundamental factors

  • The U.S. soybean crop was rated 59 percent good to excellent as of the week ending Jul. 24—down a few points from the week prior and up modestly from year-ago levels. About 26 percent of the crop had begun setting pods, the early indication yield development.

Weather, macro indicators, and news

  • A hot, dry spell is expected to impact a large swath of the Midwest over the next week, adding yield concerns to market sentiment. With the crop having been planted late, this weather coincides with the reproductive period for much of the nation’s soybean crop.
  • The Inflation Reduction Act, likely to be enacted soon, will include benefits to the production of biofuels, including renewable diesel. The traditional $1-per-gallon biodiesel tax credit would be extended through 2024. Meanwhile, a newly created sustainable aviation fuel credit would be established at $1.25 per gallon. It would also include an additional $0.01 for each percentage point its greenhouse-gas reduction exceeds 50 percent, maxing out at $1.75 per gallon.

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Source: 123rf.com
Posted by: Information Services
Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.