Soybeans finished well under the early morning highs, but still managed a 3-4 cent gain on Tuesday. Meal finished just below unchanged, while July soyoil rallied back to it’s 50 day moving average. Commodity fund traders bought 2,000 soybean and 4,500 soyoil contracts, and sold 2,500 soymeal contracts.
The EIA’s Monthly Biodiesel Production Rpeort will be released on Friday, but is sure to get burried under all of the USDA reports. Based on the Oct-Mar data, Apr-Sep soyoil use needs to be 7% over a year ago to reach the USDA’s annual forecast. After peaking in April, biodiesel plant margins have been below average over the last 2 months, and dropped in the last 2 weeks. The industry holds hope that a blenders credit will be reinstated, or possibly replaced with a producer subsidy.
With prices still more than 30 cents under last week’s high, farm selling is generally though to be slow, while light commodity fund buying has been covering of old business ahead of Friday’s USDA reports. Markets this week are largely focused on the key USDA reports, with focus on weather and yield potential to resume following the July 4th holiday.
