Monday was a mixed day of trade, with soybeans back and forth around unchanged before ending 2 cents lower. Soy product markets were mixed through the day with meal leading the soy complex lower, while soyoil followed palm oil futures higher following the monthly Malaysian palm oil report. Commodity fund traders were estimated sellers of; 2,500 soybean and 1,500 soymeal contracts, and bought 2,000 soyoil contracts.
The Malaysian Palm Oil Board reported August palm oil production was down slightly from July, while exports were above expectations and at a 3 month high. End of month stocks fell short of expectations, and November palm oil rallied following the report release to the best close since January.
After the close, NASS reported national soybean crop ratings at 60% GD/EX versus 61% last week, and 73% a year ago. National GD/EX ratings have been stable, despite rainfall totals across the Cornbelt that have been well below normal in the last month. The key figure in Tuesday’s crop report will be the implied pod weight used to forecast yield.
Our outlook stays bullish on sharp breaks amid building Chinese demand and a view that crop size estimates will decline in upcoming USDA reports.
