Prices of Beans Drop Significantly During Abroad Trading Days
Soybean prices continued to decline on Friday, with July contracts dropping 18.5 cents this week and November contracts falling 23.8 cents. The cost of cash beans also decreased, dropping 9.7 cents to $9.955. Soymeal futures remained steady, while soy oil futures fell another 145 to 150 points lower.
The drop in soybean prices can be attributed to a wetter pattern expected over the next week that is affecting crop growth in the Northern Plains to the East Central Belt. Additionally, the White House's plans to address the backlog of small refinery exemptions has led to decreased demand for soybean oil. This, in turn, has caused the RIN market to fall off and more pressure on soy oil.
According to the U.S. Department of Agriculture, export sales data from this morning showed 146,034 metric tons in old crop bean sales, coming in below analysts' estimates of 150,000 to 500,000 tons. This marked a 15-week low and a 55.8% decrease from last year. Mexico was the buyer of 52,200 tons, with 2,400 tons sold to Indonesia. New crop totaled 32,000 tons, vs. estimates of 0 to 250,000 tons.
Soybean meal sales came in at 603,169 metric tons in total, with 424,649 tons for the current marketing year and representing the largest figure since October. Of the large total for 2024/25, the Philippines bought 158,400 tons, with 97,000 tons to Japan. Bean oil sales were 19,542 tons, within the range of estimates of 5,000 to 32,000 tons, and also a seven-week high.
In futures and options trading, large managed money speculators added 24,043 contracts to their net long position as of May 27th, now at 36,967 contracts. In soybean meal, speculators cut back 13,681 contracts from their previously record net short position, which now stands at 93,785 contracts.
Monthly crush data will be updated on Monday, with traders looking for April crush to total 201.8 million bushels.
July 2025 soybeans closed at $10.413/4, down 10 cents. Nearby cash was down 9.7 cents at $9.955. August 2025 soybeans closed at $10.363/4, down 11.75 cents, while November 2025 soybeans closed at $10.263/4, down 10.5 cents. New crop cash was down at $9.645/2, down 11.5 cents.
[Source: Reuters, Bloomberg, Trader's World, CME Group]
Technology advancements in the agriculture sector, particularly precision farming and crop monitoring, could potentially improve farm efficiency, help mitigate crop losses due to weather conditions in the Northern Plains to the East Central Belt, and possibly stabilize soybean prices in the future. On the other hand, the rise of virtual sports platforms could offer an alternative investment avenue for investors who are seeking diverse portfolios and are growing weary of the unpredictable soybean market.
