Soybean Prices Soar as Commodity Markets Strengthen and the Dollar Weakens
Commodity markets strengthen, the dollar weakens, driving soybeans higher
On November 16, the Chicago Board of Trade (CBOT) soybean market closed sharply higher, mainly due to a weaker dollar and a broad surge across commodity markets, which boosted bullish sentiment in the soybean market.
At the close, CBOT soybeans rose between 18 cents and 23.50 cents, with the January contract up 23 cents at 1010 cents per bushel; the March contract up 23.50 cents at 1015.75 cents per bushel; and the May contract up 22.50 cents at 1018.25 cents per bushel.
The soybean market opened higher and climbed steadily, quickly surpassing the overnight session's highs and kicking off the day's rally. After the strong morning gains, prices pulled back slightly by midday, but in the afternoon session they surged again, setting new highs. The January contract broke through Friday's high.
Soybean oil rose relative to soybean meal, though soybean meal prices also moved higher.
Traders said the weaker dollar and sharp gains in gold and international crude oil futures lifted sentiment across agricultural markets, including soybeans. In addition, October soybean crush data came in above expectations, further fueling the soybean market's advance.
The National Oilseed Processors Association said the U.S. soybean crush in October was 155.262 million bushels, 18 million bushels above market expectations. This was also the first month in which new-crop soybeans began to be supplied for processing.
Although the soybean crush volume was far above expectations, soybean oil stocks at the end of October rose only to 2.286 billion pounds, compared with 2.262 billion pounds at the end of September. Traders said this supported soybean oil prices.
The weekly export inspection data came in at the upper end of the expected range. According to the U.S. Department of Agriculture, U.S. soybean export inspections for the week ending November 12 were 59.945 million bushels. In addition, last week's export inspection figure was revised from an earlier 59.9 million bushels to 64 million bushels.
Export inspections so far this year have reached 26.6% of the USDA's full-year export forecast, compared with the five-year average of 25.2%. Weekly export inspections for the remainder of the year need to reach 22.8 million bushels to achieve the USDA's full-year export forecast.
Weather in Missouri, central Illinois and northern Indiana will be drier over the next few days.
Over the weekend, heavy rain fell in southern Brazil, where farmers are still planting soybeans, so the rainfall will delay soybean planting. Private sources said Brazil's soybean planting is 60% complete.
Argentina's northern soybean-producing region received 1.50 inches of rain, while rainfall was lower in the drier southern areas. More rain is expected in Argentina's agricultural regions this week, especially in the north.
On November 16, soybean market volume was estimated at 112,962 contracts.
At the close, CBOT soybeans rose between 18 cents and 23.50 cents, with the January contract up 23 cents at 1010 cents per bushel; the March contract up 23.50 cents at 1015.75 cents per bushel; and the May contract up 22.50 cents at 1018.25 cents per bushel.
The soybean market opened higher and climbed steadily, quickly surpassing the overnight session's highs and kicking off the day's rally. After the strong morning gains, prices pulled back slightly by midday, but in the afternoon session they surged again, setting new highs. The January contract broke through Friday's high.
Soybean oil rose relative to soybean meal, though soybean meal prices also moved higher.
Traders said the weaker dollar and sharp gains in gold and international crude oil futures lifted sentiment across agricultural markets, including soybeans. In addition, October soybean crush data came in above expectations, further fueling the soybean market's advance.
The National Oilseed Processors Association said the U.S. soybean crush in October was 155.262 million bushels, 18 million bushels above market expectations. This was also the first month in which new-crop soybeans began to be supplied for processing.
Although the soybean crush volume was far above expectations, soybean oil stocks at the end of October rose only to 2.286 billion pounds, compared with 2.262 billion pounds at the end of September. Traders said this supported soybean oil prices.
The weekly export inspection data came in at the upper end of the expected range. According to the U.S. Department of Agriculture, U.S. soybean export inspections for the week ending November 12 were 59.945 million bushels. In addition, last week's export inspection figure was revised from an earlier 59.9 million bushels to 64 million bushels.
Export inspections so far this year have reached 26.6% of the USDA's full-year export forecast, compared with the five-year average of 25.2%. Weekly export inspections for the remainder of the year need to reach 22.8 million bushels to achieve the USDA's full-year export forecast.
Weather in Missouri, central Illinois and northern Indiana will be drier over the next few days.
Over the weekend, heavy rain fell in southern Brazil, where farmers are still planting soybeans, so the rainfall will delay soybean planting. Private sources said Brazil's soybean planting is 60% complete.
Argentina's northern soybean-producing region received 1.50 inches of rain, while rainfall was lower in the drier southern areas. More rain is expected in Argentina's agricultural regions this week, especially in the north.
On November 16, soybean market volume was estimated at 112,962 contracts.