The CBOT soybean futures ended higher despite pressure from a large Brazilian crop. Traders are adjusting ahead of USDA reports on grain stocks and planting intentions, while U.S. soybean sales to China have surged significantly. However, net sales for the previous week fell short of market expectations.
The Chicago Board of Trade (CBOT) soybean futures experienced fluctuations while grappling with the pressures of a substantial Brazilian harvest. Nonetheless, they concluded positively on Thursday, with traders adjusting their positions before an upcoming report from the U.S. Department of Agriculture (USDA). In particular, the CBOT May soybeans (SK25) recorded an increase of 4-3/4 cents, settling at $10.13 per bushel.
Meanwhile, CBOT May soymeal (SMK25) experienced a decline of 60 cents, settling at $297.10 per short ton. In contrast, May soyoil (BOK25) rose by 0.35 cent, reaching 42.71 cents per pound. Furthermore, the dollar index (DXY) continued to rise as the U.S. Federal Reserve signaled cautiousness regarding further interest rate cuts due to ongoing uncertainties concerning U.S. tariffs, which in turn impacts the competitiveness of U.S. commodities globally.
Traders are actively positioning themselves in anticipation of the USDA’s grain stocks and prospective planting reports, scheduled for March 31, which will provide crucial insights into farmers’ planting intentions for 2025. Additionally, in response to a projected shift toward Brazilian soybean supplies, U.S. soybean exports to China surged by 84.1% in the initial two months of 2025 compared to the previous year, driven by tariff-related concerns.
The USDA’s recent report indicated net U.S. soybean sales for the prior week at 352,600 metric tons for the 2024/25 marketing year, falling short of traders’ forecasts which estimated between 400,000 and 900,000 tons.
In summary, while CBOT soybean futures faced challenges from a large Brazilian harvest, they still managed to close higher. The strength of the dollar and the anticipation of USDA reports also influenced market dynamics. Notably, U.S. soybean sales to China dramatically increased, though overall sales figures did not meet trade expectations. The upcoming reports are expected to provide further clarity on the market’s trajectory.
Original Source: www.tradingview.com
