Soy Markets Extended Drop
Alan Brugler, Barchart
June 22, 2022
Front month soy futures continued their retreat on Wednesday. Meal held relatively firm and ended the day mixed but mostly lower within $1.60/ton of UNCH. Soybean futures closed with 28 1/4 to 34 1/4 cent losses in the front months. That has November soybeans at a net 61 cent drop for the week so far. BO prices gave back another 3.7% to 4% on the day, with July trading at levels not seen since April. Plunging Indonesian palm oil prices and weaker crude oil weighed the price of the BO.
Soy crush spreads were reported negative in both China (~ -$25.17/MT) and in Brazil (~ - 25c/bu).
European Rapeseed Futures were down even more on Wednesday, with another 3.8% drop to 692.5 euro/MT. the mid-May highs were in the lower 880s/MT. Similar trade in Canada had Canadian Canola Prices another 4% lower to $961 CAD/MT. That is down 21% from mid-May. During the same time, @CL has dropped just 6.5%, though crude oil was down more than $8/bbl earlier today to a 6-week low before rebounding.
Chinese soybean import data from country of origin showed that 7.8 MMT of their May imports came from Brazil with 1.73 MMT from the U.S. That compares to 9.2 MMT and 244k MT last year respectively. Of the first 5 months of 2021, China has brought in 20.5 MMT of soybeans from Brazil and 16.77 MMT from the U.S. Last year, it was 15.6 and 21.5 MMT respectively.
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