Soybean shuts down operations in Chicago.
- Emily A. Vieira
- Feb 27, 2024
- 2 min read
On the Chicago Stock Exchange, soybeans concluded the day and the week with a significant decline, driven by a substantial volume of foreign sales being canceled. TF Agro economic reported that the soybean contract for March24, the next date traded in the USA, closed down by -1.29%, amounting to -$14.75 cents/bushel at $1133.00.
Similarly, the price for May24, a key reference for the Brazilian harvest, experienced a decline soybean meal contract for March recorded a -1.02% drop, equivalent to -$3.4 per ton, settling at $331.5. Meanwhile, the soybean oil contract for March closed down by -0.43%, or -$0.19/lb at $44.02.
This marks the tenth consecutive week of negative results for the oilseed, with Friday's decline reflecting a diminished demand for American grain. Weekly foreign sales for the 23/24 harvest were reported at 55.9 thousand tons, representing the lowest volume for the commercial year.
The week saw a notable surge in canceled sales, totaling 591.7 thousand tons with an undisclosed destination, typically presumed to be China, resulting in broken contracts. Consequently, soybeans concluded the week with a significant drop of -7.30%, amounting to -$89.25 cents/bushel. Soybean meal incurred a cumulative loss of -9.99%, equivalent to -$36.80 per ton-short, while soybean oil fell by -4.35%, or -$2.00 per pound/weight.
Weekly soybean reserves hit a new low for the marketing year, standing at just 55,919 tons, significantly below the market's expected at least 300 thousand MT sold by the week ending 02/15. Total commitments for the season are now 20% below the pace set last year. Soybean meal sales for the week reached 202 thousand MT, aligning with estimates and closely mirroring last week's figures. The weekly report also indicated 5 thousand tons of soybean oil sales.
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