Soybeans Dropped After Expectations not Realized

Nov beans lost 4 3/4 cents over the week. Soybean futures lost as much as 5 1/2 cents in the nearby contracts on Friday alone. Soybean meal finished the session lower by $0.70 /ton, eating into but not erasing the $1/ ton gain on the week. Soybean oil also made a weekly increase, finishing 47 points higher over last Friday’s close. The Crop Production report by NASS this morning left the 2019 bean yield projection at 46.9 bpa, whereas most analysts were expecting a small cut. The harvested acreage estimate for 2019/20 beans is 75.626 which is in line with the October forecast. The USDA left production at 3.550 billion bushels. US ending stocks were raised 15 mbu in the report (drop in crush), and are now projected at 475 bbu. World bean carryout was above what analysts anticipated, adjusted up 2.2 MMT from last month to 95.42 MMT. A private export sale of 270,000 MT of soybeans were announced this morning, for unknown destinations and 19/20 MY delivery. The Commitment of Traders report showed that managed money’s net long position for soybean futures shrank by 19.2% as of 11/5. Soybean meal saw a larger net short position wk/wk, bean oil, on the other hand, saw a 12.33% growth in managed money’s net long position.

NOV 19 Soybeans closed at $9.18 1/4, down 5 1/2 cents,

JAN 19 Soybeans closed at $9.31, down 5 1/2 cents,

MAR 20 Soybeans closed at $9.44, down 4 3/4 cents,

MAY 20 Soybeans closed at $9.55 1/2, down 4 3/4 cents,

DEC 19 Soybean Meal closed at $303.00, down $0.70,

DEC 19 Soybean Oil closed at $31.00, up $0.07

-- provided by Brugler Marketing & Management

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