Soy futures closed firm at midweek, with soyoil leading the CBOT soy complex higher on lower than expected NOPA stocks. Soybeans finished the day 9-10 cents higher, with funds estimated buyers of 7,000 contracts. In the soy product markets, funds were estimated as buyers of 1,500 soymeal and 6,000 soyoil contracts.
NOPA reported a monthly soyoil production figure of 1.896 Bil Lbs, an 18% increase from September, and the largest production figure since last October. But despite the larger production figure, monthly soyoil stocks declined 6% from September to 1.22 Bil Lbs, and fell well short of expectations for an increase to 1.4 Bil Lbs. The soyoil stocks figure lifted soyoil futures following the report release. The soyoil yield seasonally declined, and was just under both last year and the 5 year average.
The near term outlook is neutral, with soybeans to hold a broad range of $9.50-10 until more is known about the S American growing season, and we look to advise sales on rallies.