Soybeans traded were higher overnight and able to extend gains through the day as the Brazilian currency was able to recover much of Thursday’s loss. In the soy product markets, old crop meal was down slightly for the day, while new crop ended just above unchanged, and soyoil recovered almost all of Thursday’s losses. Commodity fund traders were estimated buyers of 4,000 contracts each in soybeans and soyoil, and sold 1,500 soyoil contracts.
The weekly Commitment of Traders report showed that through Tuesday, commodity funds increased their net short soybean futures position by 959 contracts to 39,312, and were net long 2,789 contracts in options. July soybeans end the week 10 cents lower, but on a spot basis the market was near unchanged.
Planting progress has again been brought to a standstill by rains and cool temperatures across the Cornbelt, and planters are not likely to be back in the field until the last half of next week.
We look for broad ranging trade of $9.50-10 basis July to continue until more is known about the summer weather pattern and the new crop condition.
