Domestic demand and Chinese purchases are driving up soybeans

Home » Domestic demand and China purchases drive soybeans higherPhoto: Sosland Publishing Co.

Review of October 18th

• Bargain buying and short selling boosted wheat complex futures on Wednesday. Corn followed wheat with an increase. Both commodities got a boost early in the day as soybean futures hit three-week highs, supported by strong domestic demand. However, trading in soybeans was volatile, with some contracts falling lower at times. Ultimately, export demand, tight supplies and news of a sale to China caused soybeans to surge until the end. Corn in December Futures rose 3¢ to close at $4.92 per bu. Chicago December wheat gained 9¾¢ to close at $5.80¼ per bu. Kansas City December wheat gained 3¾¢ to close at $6.70½ per bu. Minneapolis December wheat gained 5¾¢ to close at $7.33½ per bu. November soybeans rose 14¼¢ to close at $13.11 per bu. December soybean meal prices rose by $14 to close at $413.80 per ton. December soybean oil fell 0.49¢ to close at 54.86¢ per pound.

• U.S. stock markets, under pressure from corporate earnings and terrorist attacks and subsequent fighting in the Middle East, fell further on Wednesday after long-term U.S. Treasury yields hit a 16-year high. The Dow Jones Industrial Average fell 332.57 points or 0.98% to close at 33,665.08. The Standard & Poor’s 500 fell 58.6 points, or 1.34%, to close at 4,314.6. The Nasdaq Composite fell 219.44 points, or 1.62%, to close at 13,314.3.

• U.S. crude oil prices were higher on Wednesday. November futures for West Texas Intermediate light sweet crude gained $1.66 to close at $88.32.

• The US dollar index strengthened for a second day on Wednesday.

• US gold Futures progressed despite the rising dollar. The October contract rose $32.60 to close at $1,955.30 an ounce.

Review of October 17th

• Strong domestic demand eased concerns about greater supply and helped lift soybean futures in weak technical trading on Tuesday. With little new news to energize bulls, corn futures slipped on Tuesday, a day after the USDA pegged the corn yield at 45%. Wheat futures fell on profit-taking after Chicago contracts hit a two-week high on strong export market enthusiasm following China’s second weekly purchase of soft red winter wheat. Corn in December Futures fell 1 cent to close at $4.89 per bu. Chicago December wheat fell 6¾¢ to close at $5.70½ per BU; 2025 contracts were higher. Kansas City December wheat fell 2¢ to close at $6.66¾ per bu. Minneapolis December Wheat fell 1¢ to close at $7.27¾ per bu. November soybeans added 10½¢ to close at $12.96¾ per bu. December soybean meal rose $9.60 to close at $399.88 per ton. December soybean oil fell 0.55¢ to close at 55.35¢ per pound.

• U.S. stock markets were mixed on Tuesday after Commerce Department data suggested online, store and restaurant spending rose a larger-than-expected 0.7% in September from the previous month, and after Treasury yields jumped The benchmark 10-year bond yield rose to 4.846%, up from 4.709% on Monday, its highest close since July 2007. The Dow Jones Industrial Average rose 13.11 points or 0.04% to close at 33,997.65. The Standard & Poor’s 500 fell 0.43 points or 0.01% to settle at 4,373.20. The Nasdaq Composite fell 34.24 points or 0.25% to close at 13,533.75.

• US crude oil Prices were stable to higher on Tuesday. November futures for light, sweet West Texas Intermediate crude were flat at $86.66 a barrel and the December contract closed up 18 cents at $85.44.

• The US dollar index reversed course and strengthened on Tuesday.

• US gold Futures rose slightly on Tuesday. The October contract rose $1.60 to close at $1,922.70 an ounce.

Review of October 16th

• Soybean oil futures jumped Monday after the National Oilseed Processors Association said soybean oil inventories had fallen to their lowest level in nine years. Soybeans rose after export controls came in above analysts’ estimates. Corn futures fell on light crop pressure, forecasts of abundant corn supplies and the forecast for hot, dry weather favoring this week’s crop. Spring wheat futures rose, but winter wheat futures were under pressure due to lower wheat prices in Russia and also saw a setback in profit-taking after rising to a two-week high last week as China’s soft red winter wheat purchases boosted hopes of renewed global demand to the USA awakened deliveries. Corn in December Futures lost 3¼¢ to settle at $4.90 per bu. Chicago December wheat fell 2½¢ to close at $5.77¼ per bu. Kansas City December wheat fell ¼¢ to close at $6.68¾ per bu. Minneapolis December Wheat added 6¾¢ to close at $7.28¾ per bu. November soybeans added 6¢ to close at $12.86¼ per bu. December soybean meal rose 20¢ to close at $390.20 per ton; The later months were mixed. December soybean oil added 1.52¢ to close at 55.90¢ per pound.

• While gold prices and U.S. Treasury yields fell, U.S. stock markets rose on Monday on investors’ hopes that the war in the Middle East would not have a major impact on the global economy. The Dow Jones Industrial Average rose 314.25 points or 0.93% to close at 33,984.54. The Standard & Poor’s 500 gained 45.85 points or 1.06% to settle at 4,373.63. The Nasdaq Composite gained 160.75 points or 1.2% to close at 13,567.98.

• US crude oil fell back to the lowest side on Monday. November futures for West Texas Intermediate light sweet crude lost $1.03 to close at $86.66 a barrel.

• The US dollar index Weakened Monday.

• US gold Futures withdrawn on Monday. The October contract fell $6.30 to close at $1,921.10 an ounce.

Review of October 13th

• US gold Futures rose sharply on Friday as investors flocked to safe havens amid rising tensions in the Middle East. Early Friday, the Israeli military sent evacuation notices to Gaza citizens ahead of a suspected attack. The October contract rose $58.10 to close at $1,927.40 an ounce.

• Profit-taking drove soybean futures lower on Friday, after rising a day earlier on lower USDA crop estimates. Corn followed soybeans lower. Wheat rebounded in Chicago on improving export signals following China’s second weekly purchase of soft red winter wheat. Chicago deferred contracts and all wheat futures in KC and Minneapolis declined. Grain and oilseed futures were under pressure due to weakening consumer sentiment and inflation concerns. Corn in December Futures fell 2¾¢ to close at $4.93¼ per bu. Chicago December wheat added 8¼¢ to close at $5.79¾ per BU; September 2024 and beyond were lower. Kansas City December wheat fell 6 cents to close at $6.69 per bu. Minneapolis December Wheat fell 1½¢ to close at $7.22 per bu. November soybeans fell 9¾¢ to close at $12.80¼ per bu. December soybean meal fell $2.90 to close at $390 per ton. December soybean oil added 1.01¢ to close at 54.38¢ per pound.

• The threat of escalating conflict in the Middle East prompted investors to pull out of the stock market and invest in safe havens on Friday. Nevertheless, the Dow Industrials Index posted a small increase on Friday and was up for the week, as was the S&P 500. The Dow Jones Industrial Average The price rose 39.15 points or 0.12% to close at 33,670.29. The Standard & Poor’s 500 fell 21.83 points or 0.5% to settle at 4,327.78. The Nasdaq Composite fell 166.98 points or 1.23% to close at 13,407.23.

• US crude oil switched to the high side on Friday. November futures for West Texas Intermediate light sweet crude rose $4.78 to close at $87.69 a barrel.

• The US dollar index strengthened again on Friday.

Review of October 12th

• U.S. corn and soybean futures prices rose on Thursday after the USDA cut its crop forecasts for both crops as hot, dry weather hit yields at key development stages. Wheat futures followed corn and soybeans, rising despite unsupportive estimates from the USDA, which raised its 2024 wheat transmission estimate by 55 million busses from September. Corn in December Futures rose 8 cents to close at $4.96 per bu. Chicago December wheat packed to 15½¢ to close at $5.71½ per bu. Kansas City December wheat added 7¾¢ to close at $6.75 per bu. Minneapolis December Wheat rose 5¼¢ to close at $7.23½ per bu. November soybeans rose 37½¢ to close at $12.90 per bu. Soybean meal in October rose $13.30 to close at $387.60 per ton. October soybean oil Added 0.95¢ to close at 54.47¢ per pound.

• Commerce Department data showed that the summer’s inflation-busting gains paused in September and U.S. stock markets closed lower. Data showed that the consumer price index rose 3.7% since September 2022, the same as in August. Core prices, which exclude the volatile food and energy categories, rose 4.1% from September 2022, compared to 4.3% in August. The Dow Jones Industrial Average rose 173.73 points or 0.51% to close at 33,631.14. The Standard & Poor’s 500 fell 27.34 points or 0.62% to close at 4,349.61. The Nasdaq Composite fell 85.46 points or 0.63% to close at 13,574.22.

• US crude oil declined again on Thursday. November futures for light, sweet West Texas Intermediate crude lost 58 cents to close at $82.91 a barrel.

• The US dollar index strengthened again on Thursday.

• US gold Futures snapped its four-day winning streak as the October contract fell $3.50 to close at $1,869.30 an ounce.

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