Soybean rallied overnight on market concerns for S American dryness, but gave back some of the gains through the day. At the close, January soybeans were 4.25 cents higher. Commodity fund traders were estimated buyers of; 6,000 soybean and 6,500 soymeal contracts, and sellers of 3,700 contracts in the soyoil market.
Soybean export inspections were well above expectations at 66 Mil Bu, while the previous week’s total was revised up by more than 5 Mil Bu. Cumulative inspections for the year now total 840 Mil Bu versus 959 a year ago. The chart plots the relationship between cumulative export inspections and the December WASDE export estimate. The USDA has held their forecast at 2,250 Mil Bu since Sept, but it could start making cuts next week due to the shipment pace.
Argentine farmers report dry soils producing seed germination woes with dry and warm weather forecast into late December. The dryness also extends north into S Brazil. One cannot be overly bearish without the forecast of better rains.
