Soybean Futures & Market Updates | March 26, 2024

soybean market futures

Soybean Insights: Market Trends and Projections

In the realm of soybean trading, May delivery futures have slumps by 10.25¢, reaching $12.00¼ per bushel. Concurrently, soymeal experienced a dip of $1.9 to $340.60 per short ton, while soybean oil price displayed resilience, slumps 0.60¢ to reach 48.48¢ per pound.



Contract Last Change Open High Low Close
24-May 11.99 -10.25 12.075 12.08 11.9775 12.0025
24-Jul 12.125 -9.25 12.2 12.21 12.115 12.1425
24-Aug 12.0975 -8.5 12.1625 12.1775 12.0875 12.1125

Soybean Oil

Contract Last Change Open High Low Close
24-May 0.4842 -0.6 0.4902 0.4916 0.4838 0.4848
24-Jul 0.4899 -0.58 0.4956 0.4971 0.4894 0.4906
24-Aug 0.4899 -0.53 0.4952 0.4964 0.4894 0.4904

Soybean Meal

Contract Last Change Open High Low Close
24-May 3.398 -1.9 3.415 3.417 3.385 3.406
24-Jul 3.435 -1.8 3.452 3.453 3.422 3.441
24-Aug 3.444 -1.6 3.457 3.46 3.43 3.447

By Abdul Hameed Team

Soybean Harvest in South America: Market Dynamics and Forecasts

The soybean harvest in South America is in full swing, driving up the global supply. Despite this, market quotes remain stubbornly above the $12/bushel mark, indicating sustained demand. Traders are closely monitoring developments in Brazil and Argentina, where soybean production is poised to surpass last year’s figures by a significant margin, regardless of weather conditions.

  • Brazil and Argentina: Key Players in Soybean Production

Brazil and Argentina stand out as key contributors to the global soybean market. As of March 21, Brazil has already harvested 69% of its soybeans, with progress similar to last year’s. Harvesting is underway in regions like Matopibi and Rio Grande do Sul, where favorable yields have been reported. However, challenges persist, with the USDA revising its production forecast for MY 2023/24 downwards due to lower yields in central regions. Despite this setback, the USDA representative remains optimistic about a rebound in productivity for the following marketing year.

  • Forecast Updates and Market Trends

In Argentina, the Buenos Aires Grain Exchange (BAGE) has maintained its soybean crop forecast at 52.5 million tons, despite recent adverse weather conditions. However, FAS USDA experts have adjusted their forecast downwards, citing potential challenges in the upcoming marketing year. Meanwhile, soybean exports from the USA have slowed compared to previous years, indicating a shifting landscape in global trade dynamics.

  • China’s Role in the Global Soybean Market

China, as the world’s largest soybean importer, plays a pivotal role in shaping market dynamics. Despite efforts to boost domestic production, the country remains heavily reliant on imports. Forecasts indicate a slight decline in soybean planted area for the coming marketing year, reflecting shifting priorities in agricultural policy. However, domestic consumption continues to rise steadily, underscoring China’s importance as a key market for soybean oil price

Indicator 2023-24 Estimate 2024-25 Forecast Change
Soybean Planted Area (million hectares) 10.05 9.95 Decrease of 0.1 million hectares
Soybean Production (million tonnes) 19.7 19.6 Slight decrease in production
Genetically Modified (GM) Varieties Approved 37 corn, 14 soybean Expansion in GM crop varieties
Soybean Imports (million tonnes) 103 103 Stable import volume
Domestic Soybean Consumption (million tonnes) 120.8 Record-high consumption

Regional Insights: Brazil’s Soybean Outlook

In Brazil, the current soybean season has faced challenges, with yields expected to fall short of initial expectations. Dry conditions at the beginning of the season and adverse weather in subsequent months have impacted crop development. Despite this, the area under soybeans is projected to see marginal growth for the upcoming season. However, experts warn of diminishing incentives for acreage expansion due to rising production costs and subdued selling prices.

  • Forecasts and Yield Expectations

Looking ahead, forecasts suggest a modest increase in soybean harvest for Brazil in the next marketing year. However, the final output is expected to remain below previous years’ levels. Experts anticipate a slight improvement in oilseed yield, albeit still lower than previous seasons.

Harvest Delay and Crop Conditions in Argentina

Recent rainfall in Argentina, totaling 10 inches last week, has caused delays in the harvest process and led to flooding in certain fields. According to the Rosario Chamber of Commerce, only 8% of the country’s corn has been harvested, significantly below the average of 15%. Furthermore, soybean harvesting has yet to commence. Forecasts predict dry and warm weather in the upcoming weeks, which should facilitate the acceleration of the harvesting process. Presently, approximately 70% of soybean crops are experiencing optimal moisture conditions.

Analysts at the Rosario Grain Exchange suggest that the heavy rainfall, persisting in key soybean and corn cultivation regions in Argentina, may diminish in the following weeks. They anticipate this trend to positively impact the progress of field work throughout the country.

  • Impact of Excessive Moisture on Crops

However, agricultural experts highlight the adverse effects of excess water on soybean crops. Particularly in the provinces of Buenos Aires and Santa Fe, the saturation of fields has led to a decline in the condition of soybean crops.

Expansion of Sunflower Cultivation in Kazakhstan

During a government meeting on March 26, the Minister of Agriculture of the Republic of Kazakhstan, Aidarbek Saparov, announced plans to expand sunflower cultivation in the country. Kazakhstan aims to increase the area under oilseeds by 385 thousand hectares this year, reaching a total of 3.2 million hectares. Notably, the cultivation of sunflower, a crop of significant social importance, is expected to expand by 60 thousand hectares, totaling 1.2 million hectares. Last year, official statistics reported oilseed cultivation in Kazakhstan at 1.179 million hectares. soybean oil price

Rising Soybean Consumption in Indonesia

In Indonesia, soybean consumption is projected to rise by 3% in the upcoming year, driven by growing demand from the food sector. Estimates indicate consumption reaching 2.86 million tonnes for the 2024-25 period. The tempeh and tofu industry serve as the primary consumers of imported soybeans, accounting for approximately 90% of the supplies, as reported by the Foreign Agricultural Service (FAS) of the US Department of Agriculture.

  • Anticipated Growth in Soybean Meal Use

Soybean meal utilization is expected to witness a 2% increase, reaching 5.75 million tonnes, fueled by continued demand from the feed sector. Poultry feed constitutes the largest consumer, comprising at least 80% of animal feed consumption in 2023. Imports are forecasted to reach 5.8 million tonnes, reflecting a 100,000-tonne increase from the previous year.

Palm Oil Production and Exports in Indonesia

Indonesia recorded the sale of 2.9 million tons of palm oil abroad in the first two months of 2024, according to the country’s Ministry of Trade. In January, exports amounted to 1.89 million tons, followed by 1.01 million tons in February.

  • Forecast for Palm Oil Production

Palm oil production is anticipated to rise by 3% to 47 million tonnes in 2024-25, attributed to the expected recovery from the 2023 El Niño effects on the Southern Sumatera region. Growth in the industrial sector, driven by higher blending rates, increased diesel consumption, and export demand, is likely to fuel further expansion. Exports for 2024-25 are projected at 28 million tonnes, indicating a slight increase from the previous period due to sustained demand from major markets. Assuming no significant increase in the mandatory biodiesel program’s usage, exportable palm oil is expected to align with production growth.soybean oil price

Soybean and Palm Oil Outlook for Indonesia

Aspect 2024-25 Forecast Change from Previous Year
Soybean Consumption 2.86 million tonnes Increase of 3%
Soybean Imports 2.55 million tonnes Increase of 50,000 tonnes
Soybean Meal Use 5.75 million tonnes Increase of 2%
Soybean Meal Imports 5.8 million tonnes Increase of 100,000 tonnes
Soybean Production 360,000 tonnes Reduced harvest area

Palm Oil Production

47 million tonnes Increase of 3%
Palm Oil Consumption 19.8 million tonnes Slight increase
Palm Oil Exports 28 million tonnes Slight increase

In conclusion, the soybean market’s intricacies reflect a delicate dance of supply, demand, and global dynamics. As we navigate these fluctuations, staying attuned to market trends and agricultural forecasts is paramount across the supply chain. So we are predicting that soybean market project a neutral  trend Projections and as well in hovering within the range of $11.3 to $12.3 per bushel.