Soybean Gains Holding on Wednesday as Trade War Escalates
Soybeans are looking at midday gains despite the trade war escalation overnight, as contracts are up 2 to 6 cents. CmdtyView’s national front month Cash Bean price is up 3 cents at $9.41. Soymeal futures are up $3.70/ton, with Soy Oil futures down 35 points.
The addition 50% tariffs on China went into effect overnight, taking the new total to 104% on all Chinese goods. China retaliated with a 50% increase on US goods, taking to total to 84% to be implemented on Thursday.
The USDA reported a private export sale of 198,000 MT of soybeans to unknown destinations this morning. Analysts estimate the 2024/25 soybean sales at 200,000 to 700,000 MT in the week of April 3 ahead of the Export Sales report on Thursday. New crop is estimated to be 0-50,000 MT. Soybean meal sales are estimated to be in a range of 75,000 to 470,000 MT, with bean oil expectations at 5,000 to 37,000 MT.
USDA will update the US and World balance sheets on Thursday via the monthly WASDE. The trade is looking for US carryout to be tallied at 379 mbu according to a Reuters survey of analysts, vs. 380 mbu in last month’s report. South America is expected to see very little change, with Argentina down 0.21 MMT to 48.79 and Brazil estimates up 0.11 to 169.11 MMT.
May 25 Soybeans are at $9.95 1/2, up 2 3/4 cents,
Nearby Cash is at $9.41, up 3 cents,
Jul 25 Soybeans are at $10.07 1/2, up 3 1/2 cents,
Nov 25 Soybeans are at $9.83, up 5 1/4 cents,
New Crop Cash is at $9.22 3/4, up 5 1/2 cents,
On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.