: CBOT soybeans were higher at the open and finished up 11-14 cents at Wednesday’s close. A midday newswire report that indicated the EPA’s 2018 biofuel proposal would slightly lower the the Advanced Biofuel Standard briefly sent soyoil/soybeans lower. However, November soybeans caught support on the break back at the 200 day moving average, and the market marked it best close since late March.
Commodity fund traders were estimated as buyers through Wednesday’s trading of 12,000 soybean and 6,000 soymeal contracts, while being flat in soyoil.
After the close, NASS reported that 64% of the US soybean crop was rated as GD/EX versus 66% last week, and 70% a year ago. Crops in the Dakota states continue to roll backwards, with just 36% of SD and 48% of ND rated GD/EX.
WI holds the best rated crop at 75% GD/EX followed by MN at 72%. USDA is not expected to change their yield estimate next week, but a further fall of 2-4% in GD/EX is expected next Monday.
20 Mil soybean acres in the Cornbelt are rated as short/very short on topsoil moisture. Soybeans are reported to be growing slowly and short where soils are parched. Bloom is underway and the crop is being stressed. The next upside price target is $10.25-10.40 and then $11.00.
