Soybean Report, 05/25/2016

Thursday, August 25, 2016

Not even a bullish NC bean number could prop up beans prior to the break. Beans have finally climbed into 3rd place, but still trail 13/14 by about 3 MMT and last year by right at 6 MMT. Products did disappoint, especially oil, so that factored in a bit to the equation. OI in beans are about to fall below the 2nd spot it has held for some time now after relinquishing 1st place over the last 6 years. It could easily end up in 4th by next week with the long liquidation and lack of producer selling we are experiencing. Meal and oil continue to run right at the top of their OI chart with meal in second and oil eking out 1st. Weather not an issue. Crop tour not showing results to indicate any lower yields are to be expected, in fact they point to even better. Spreads are weakening on the prospects. Basis continues to ratchet higher as finding beans to fill crush contracts into NC are getting tougher and tougher to locate. Exporters probably can find a little more wiggle room with delays, but even that is minimal without discounting and losing some margin. That said, it might be cheaper than paying up for nearby. Bean harvest in the south being delayed or in some places eliminated is not helping the situation. This weather needs to change for fall harvest in the Midwest not to trail normal as well. Beans should continue to feel pressure of long liquidation as this crop is being put to rest.

Unless otherwise noted, the posts on this blog should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Inc. or its subsidiaries. INTL FCStone Inc. is not responsible for any trading decisions taken by persons viewing this material. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. These materials represent the opinions and viewpoints of the author, and do not necessarily reflect the viewpoints and trading strategies employed by INTL FCStone Inc. or its subsidiaries. Reproduction without authorization is prohibited. All rights reserved.

Market Intelligence Free Trial

Meet the Team

Kansas City, MO
1251 NW Briarcliff Parkway
Suite 800
Kansas City, MO 64116
Tel:+1 (816) 410-5079



Our privacy policy has changed. View our privacy policy to learn more.