Soybean Market Extends Buying into the End of the Week
The soybean market closed the Friday session with contracts steady to 10 ½ cents higher, a notable gain. The front months led the bull spreading, indicating a strong trend. August soybeans managed a 43 ½ cent gain this week, while November soybeans were 50 ½ cents higher.
The cmdtyView national average Cash Bean price was up 9 3/4 cents at $12.14 3/4. This increase in cash prices is a positive indicator for the market. Soymeal futures saw a significant increase, ranging from $1.40 to $3.70, with August soymeal futures up $11.10 since last Friday.
Soy Oil futures, however, were down 27 to 126 points at the close, with August slipping 48 points on the week. This decrease in soy oil prices is a slight concern for the market.
Noaa 7-Day QPF: Dry Conditions Ahead
The National Oceanic and Atmospheric Administration (NOAA) 7-day Quantitative Precipitation Forecast (QPF) shows less than 0.5 inches of precipitation across much of the main soybean growing regions in the next week. This dry spell is expected to impact soybean yields. However, there are some exceptions, such as Ohio, where spotty totals up to an inch are expected in Wisconsin and Minnesota.
The 8-14 day outlook shows a drier pattern in the first week of August for much of the Dakotas, Iowa, Minnesota, and Wisconsin. This prolonged dry spell could have significant implications for soybean production and prices.
Commitment of Traders Data: Speculators Add to Net Long Position
Commitment of Traders data from Friday afternoon showed speculators adding a large 52,212 contracts to their net long position in soybean futures and options in the week ending on July 21. This increase in speculative buying is a bullish sign for the market.
The net long position was 124,900 contracts by Tuesday. This significant increase in speculative buying is a positive indicator for the market, suggesting that investors are optimistic about the future of soybean prices.
Weekly Export Sales: Accumulated Sales Reach 100% of USDA Projection
Weekly Export Sales data from the United States Department of Agriculture (USDA) has old crop export business accumulated to 41.38 MMT, which is now 100% of the USDA export projection. This is a notable achievement, indicating strong demand for soybeans.
Accumulated sales are now 6.136 MMT, which is 135.5% above the same week last year. This significant increase in export sales is a bullish sign for the market, suggesting that soybean prices are likely to remain strong.
Market Prices: Soybeans Close Higher
Aug 26 soybeans closed at $12.48, up 10 1/2 cents. Nearby Cash was $12.14 3/4, up 9 3/4 cents. Sep 26 soybeans closed at $12.40 1/4, up 9 1/4 cents. Nov 26 soybeans closed at $12.53 1/2, up 9 3/4 cents.
New Crop Cash was $11.94 1/4, up 10 cents. These price increases are a positive indicator for the market, suggesting that soybean prices are likely to remain strong.
