Afternoon Soybeans: Beans settle back to end the week.

The soybean market ran into end-of-week liquidation and selling as Midwest harvest acceleration approaches just around the corner.  It has been a challenging week for beans as the market struggles with our reduced export capacity out of the Gulf which has led to China turning to higher priced Brazilian purchases and the cancellation of a handful of US cargoes midweek.  There are reports that China bought up to a dozen Brazilian cargoes for Oct/Nov shipment this week although those purchases could be washed out if Gulf logistics normalize quickly.  The dollar traded up to multi-week highs which added a negative macro influence for many commodities including crude oil which was a drag on soybean oil from the energy side. 

November beans ended the day 12 cents lower and for the week, the contract lost 2 ½ cents while the weekly chart was aided by the September expiration to show an 8 ¾ cent gain.

The USDA reported a private sale of 132 tmt of beans to China this morning, the past two days have featured new sales of 4 cargoes that almost offset the 5 cargoes cancelled on Wednesday. China continues to buy high priced Brazilian cargoes - in addition to US - for near term fill in coverage until US export capacity is more fully restored. Center Gulf export capacity is a slowly improving, work in progress. Barge freight has surged this week with harvest ramping up and barges backed up around NOLA waiting to unload before heading back north.

CHS yesterday said it expected its Myrtle Grove, Louisiana, grain export terminal to be operational by the height of the US corn and soy harvest but could not be more specific. The terminal remains without power and repair crews are using an onsite generator, but full power will have to be restored in order to resume shipments. Cargill reopened its Westwego, Louisiana, terminal this week, while Louis Dreyfus and ADM have been loading export shipments for several days now. Bunge's Destrehan, Louisiana, facility has been running intermittently.

The COT report showed managed fund money through the week ending 9/14 as sellers of the grains. They -2.9k corn (net long 212k), -11.1k srw (net short -6k), -3.5k hrw (net long 37.6k), -2.1k beans (net long 55.3k), -8.5k meal (net short -16.3k) and -5.9k oil (net long 47k)

In the product trade, meal and oil both traded weaker on the day. Meal gained in the oil share although oil spent much of the day narrowing the early session spread losses. Bean oil, canola and Malaysian palm oil closed in the red but each of those veg oils settled well of their respective session lows.

Elsewhere in the news, IHS Markit (formerly Informa) projected 2021 US Soybean production at 4.381 billion bushels. The group is estimating 50.6 bushels per acre for yields this season, and harvested soy acres at 86.586 mln acres. They forecasted 2022 US Soybean planted acres at 86.6 mln acres off -0.9% from the 87.385 mln planted acres this season.


Soybean Basis:
Location Spot
US Gulf steady +72
Brazil Paranagua steady +240x
Cedar Rapids, IA steady -30x
Mankato, MN off 5 to -30x
Decatur, IL steady -10x
Claypool, IN steady opt price x
Columbus, OH steady -10x