Chicago, July 25 News: Soybean futures on the Chicago Board of Trade (CBOT) closed higher on Monday, with the benchmark closing up about 2.3%, mainly due to the high temperature and dry weather in soybean producing areas, and the strengthening of international crude oil futures.
As of the close, soybean futures rose 28 cents to 38.50 cents, of which the August futures closed 38.50 cents higher at 1473 cents per bushel; the November futures closed 30.25 cents higher at 1346 cents / bushel; January futures settled up about 30.25 cents at 1353.50 cents / bushel.
The most active November futures trading range was 1314.50 cents to 1349.25 cents.
Weather forecasts suggest temperatures will rise above normal this week, possibly 3 to 8 degrees Fahrenheit above normal, from corn plantings in the West to the Great Lakes and across the Northeast. This week and early next week will see hot weather in the U.S. Northwest, with temperatures expected to be 10 to 20 degrees Fahrenheit warmer than normal in several areas and, in extreme cases, 110 degrees Fahrenheit on Wednesday. Such weather conditions are not conducive to the growth of soybean crops.
The U.S. Department of Agriculture’s crop weekly report released after the market showed that as of July 24, the U.S. soybeans were 59% good to good, down 2% from a week earlier and 58% in the same period last year.
The strong rise of international crude oil futures also has support for the soybean market, because soybeans are the main raw material for the production of biofuels.
The U.S. Department of Agriculture’s weekly export inspection report showed that the number of U.S. soybean export inspections in the week ended July 21 was 388,212 tons, down 11.1 percent from a week earlier, but 60.3 percent higher than the same period last year. Year-to-date export inspections totalled 53,000,942 tonnes, down about 9% year-on-year.
Consultancy Safras expects Brazil’s soybean production to reach 154.5 million tonnes in 2022/23, with exports reaching 91.5 million tonnes.
Chinese buyers are said to have purchased soybeans from the U.S. Gulf on Monday for shipment in March, as well as Brazilian soybeans scheduled for August.
On Monday, volume in the benchmark futures contract was estimated at 83,955 lots, compared with 89,871 lots in the previous session. Short volume was 322,830 lots, compared with 321,283 lots in the previous session.
Disclaimer: This article is for reference only and is not responsible for the results of the transaction without verification.