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Soybean Market Starts the Day with Modest Gains on Chicago Board of Trade

Writer's picture: Ipasai NewsIpasai News
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This Wednesday (July 3rd), the soybean market began the day on a positive note on the Chicago Board of Trade (CBOT). The September 2024 contract was trading at $11.14, up by 3.25 points, while the November 2024 contract, a key indicator for US farmers, rose by 4.25 points to $11.17. This upward trend is supported by the recent rally in soybean derivatives, with soybean oil futures having advanced more than 2% yesterday.


The upward movement is not limited to soybean oil futures in Chicago but also includes vegetable oils in general, with notable gains in China and palm oil in Malaysia. "Palm oil is at its highest level since April," noted the team at Agrinvest Commodities.


Despite the appreciation, the market remains focused on the US crop season, as the USDA (United States Department of Agriculture) has recently provided key indicators for the current grain cycle in the US. On the previous Monday, the USDA reported the condition of the country's crops, indicating that 67% of the areas are rated as good or excellent, the same as the previous week. Additionally, 25% of the fields are in fair condition, while 8% are in poor or very poor condition, consistent with the prior week's report.


Weather conditions in the US Midwest continue to be a focal point, with the market closely monitoring irregular rainfall patterns and milder temperatures expected across the Corn Belt. Updated maps reported on Tuesday by the Commodity Weather Group indicate better-distributed rainfall between July 2nd and 6th, with below-average temperatures in some producing states.


Last week, the USDA released two other crucial reports, updating the planting areas and US stocks for soybeans, corn, and wheat. For soybeans, the market anticipated higher planting numbers compared to the March planting intentions report. The soybean report revealed that 34.84 million hectares were planted, slightly below the 35.01 million hectares estimated three months ago. In the 2023/24 season, the US cultivated 33.83 million hectares.


Soybean stocks are higher, recorded at 26.4 million tonnes, compared to market expectations of 23.43 to 27.62 million tonnes. A year ago, US stocks stood at 21.66 million tonnes.

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