Soybeans Seeing Some Sell the Fact Action on Chinese Buying Rumors

Soybeans are slipping back lower on Wednesday morning by 8 to 9 cents in sell the fact reaction. They bought the rumor on Tuesday and posted 4 ¾ to 11 ¼ cent gains across the board, as contracts fell off the intraday highs. Shorts were covering again on Tuesday, with open interest down 19,701 contracts. The cmdtyView national average Cash Bean price is 11 3/4 cents higher at $10.10 1/2. Soymeal futures are up $6.20 to $8.50, with Soy Oil futures 16 to 51 points lower.

Ahead of the Trump/Xi meeting overnight into Thursday, China has been rumored to purchase at least 180,000 MT of soybeans. We won’t know the exact totals anytime soon due to the government shutdown restricting the FAS weekly Export Sales report and large daily sale announcements. Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis.

The trade is looking for soybeans to be near 84% harvested as of 10/26. The Crop Progress report was not reported due to the government shutdown.

Brazil soybean exports are seen at 7 MMT in October according to ANEC, a drop of 0.34 MMT from last week’s estimates

Nov 25 Soybeans closed at $10.78 1/4, up 11 cents, currently down 8 3/4 cents

Nearby Cash was $10.10 1/2, up 11 3/4 cents,

Jan 26 Soybeans closed at $10.95 1/4, up 10 1/4 cents, currently down 9 cents

Mar 26 Soybeans closed at $11.06 3/4, up 11 1/4 cents, currently down 9 cents

On the date of publication, Austin Schroeder did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.