Last week was interesting for the soy complex as prices rallied before correcting a bit on Friday. A bullish WASDE report sent soy complex futures to new highs with the Mar-21 contract surpassing $14 per bushel for the first time since 2014. Likewise, soybean meal and oil contracts closed the week at $463.20 per ST and $0.4185 per pound, respectively.
USDA’s report dropped global ending stocks to 84.31 MMT as a result of changes in a few regions, including the U.S. The question remains as to whether that drop was sufficient considering weather has only recently improved in South America and demand thus far has been reasonably strong in the U.S. The market is likely considering some of this dynamic, but additional bullish sentiment remains.
Market focus can now shift towards consumption, a mixed bag between soybeans, soybean meal, and soybean oil. In the case of soybeans, both crush and exports remain strong.
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