Following firm trading overnight, soybeans extended gains through Tuesday with an old crop export sales announcement supporting the move. July soybeans marked the highest daily close since late March, just ahead of the USDA reports. Commodity fund traders were estimated buyers of 5,500 soybean and 3,000 soymeal contracts, and were flat for the day in soyoil.
The USDA announced old crop soybean export sales of 132,000 MTs to an unknown destination, the 3rd old crop sales announcemnet in the last month. To date there has not been significant cancellations, and none are expected given current price spreads. Brazilian soybeans for June are offered 12 cents over the US Gulf, with July and August at 20-24 cents over. It’s rare that Brazilian beans are over the US in mid-May, with last year being another exception. US new crop offers are 55 cents over the CME versus 95 cents over a year ago
Our view in recent weeks has been for soybeans to hold a broad range of $9.50-10, and fund short covering looks to be supporting the market near term. We target $10+ for the next sale.
