Soybean Futures & US Market Projections | April 19, 2024

soybean futures

Soybean Insights: Market Trends and Projections

US market trading of soybean May delivery futures have surges by 16.25¢, reaching $11.51¼ per bushel. Concurrently, soymeal experienced a Up of $5.7 to $344.20 per short ton, while soy oil displayed resilience, surges 0.26¢ to reach 44.48¢ per pound.


Contract Last Change Open High Low Close
24-May 11.505 16.25 11.34 11.53 11.3175 11.5175
24-Jul 11.6575 16.75 11.4825 11.68 11.4575 11.665
24-Aug 11.6675 15.5 11.505 11.6925 11.485 11.68

Soybean Oil

Contract Last Change Open High Low Close
24-May 0.4438 0.26 0.4398 0.4466 0.435 0.4448
24-Jul 0.4494 0.28 0.4455 0.4522 0.4406 0.4502
24-Aug 0.4514 0.26 0.448 0.4542 0.443 0.4521

Soybean Meal

Contract Last Change Open High Low Close
24-May 3.437 5.7 3.378 3.458 3.376 3.442
24-Jul 3.432 5.8 3.37 3.449 3.367 3.434
24-Aug 3.434 5.6 3.372 3.449 3.371 3.435

 Click Here To View April 18, 2024 Report

U.S. Grains in Global Export Market: Impact on Soybean Prices

The movement of US grains market in the global export market, particularly soybeans, is under scrutiny as market dynamics shift. Industry experts note a notable impact from currency fluctuations and market reports on soybean prices.

  • Currency Effects and Market Trends

The influence of currency fluctuations, stating, “A stronger dollar and a weaker real in Brazil are widening the price spread in Brazil’s favor.” The rise in the US dollar index, attributed to expectations of a Federal Reserve interest rate cut, further exacerbates this trend.

  • Market Reports and Price Movement

Weekly export sales report as a contributing factor to soybean price fluctuations. While recent soybean sales align with analysts’ expectations, they are described as generally weak. This sentiment is reflected in the July-to-November soybean spread, which traded negative, indicating minimal market carry.

Recent Export Announcements

The United States Department of Agriculture (USDA) recently announced two significant export sales:

  • Mexico’s purchase of 216,500 metric tons (mt) of corn, split between the 2023/2024 and 2024/2025 marketing years.
  • Unknown destinations’ acquisition of 121,500 mt of soybeans, similarly divided between marketing years.

Expanding Soybean and Corn Acreage in Brazil

Brazil holds immense potential for expanding soybean and corn acreage, with opportunities awaiting as long as prices remain conducive for Brazilian farmers to ensure profitable returns on their investments. they are cultivated consecutively in the same areas. Moreover, much of Brazil’s new crop acreage results from the conversion of degraded pastures to row crop production, presenting a vast opportunity for expansion.

  • Converting Pastureland to Crop Production

According to estimates by the Brazilian Agricultural Research Service, Embrapa, approximately 70 million acres of pastureland could be converted to crop production without necessitating additional deforestation. Primarily located in the cerrado area of central Brazil, this conversion would signify a substantial 35% increase in current production acreage. Pasture degradation, induced by factors such as overgrazing, inadequate weed and pest control, and insufficient soil fertilization, facilitates this conversion process.

Recent Trends in Agricultural Shipments

  • Oilseed Shipments in March

In March, agricultural enterprises in Russia witnessed a 9.5% year-on-year reduction in oilseed shipments, amounting to 1.5 million tons, according to data from Rosstat. Conversely, sunflower shipments experienced a slight increase of 0.3%, totaling 925 thousand tons during the same period. Additionally, domestic farmers in Russia augmented sales of grains and leguminous crops by 12.8%, reaching 6.5 million tons. 

  • Quarterly Performance

Throughout the first quarter of 2024 (January-March), shipments of oilseeds by agricultural organizations in Russia declined by 2.3%, totaling 4 million tonsSunflower exports experienced a more notable reduction, decreasing by 8.5% to 2.5 million tons during the same period.

Paraguay’s Soybean Export Dynamics

Paraguay, ranked as the world’s third-largest exporter of soybeans, anticipates a record-breaking harvest of 10.4 million tons of soybeans this year. Major players in soybean exports from Paraguay include Cargill, Viterra, and Bunge. The country’s soybean production is rebounding from the adverse effects of the 2021/22 drought, which halved the previous year’s harvest.

  • Q1 Performance

In the first quarter, Paraguay witnessed a notable increase in soybean exports, rising from 1.6 million tonnes to 2.5 million tonnes compared to the corresponding period last year. However, shipments slowed down in March due to declining water levels resulting from dry weather in the Brazilian Pantanal region, despite efforts such as river dredging.

  • Export Logistics Challenges

Paraguay primarily transports its grain exports by barge to seaports in Argentina and Uruguay, with 80% of all exports conducted via river transportation. Challenges such as the strike of Brazilian agricultural workers demanding higher wages have compounded logistical issues, particularly in road exports to Brazil. 

EU’s Directive on Import Tariffs for Agricultural Goods

The European Union (EU) heads of state have instructed the European Commission (EC) and the EU Council to pursue the implementation of tariffs on agricultural imports from Russia and Belarus. The directive, issued following the EU summit, emphasizes the necessity of additional tariffs on specific agricultural products from these countries, considering the potential impact on the EU’s single market. Notably, measures must be implemented while safeguarding the transit of such products to developing nations. us market

Australian Rapeseed Production Outlook

  • Current Estimates and Forecast

Australia’s rapeseed cultivation is projected to cover 8.27 million acres, marking a 4% decrease compared to the previous year. However, if the ongoing drought in Western Australia persists, a significant reduction in crop yields is foreseeable. Western Australia, accounting for 44% of the nation’s rapeseed production in the previous season, remains susceptible to adverse weather conditions.

  • Export Dynamics and Market Trends

Australia ranks as the world’s second-largest exporter of rapeseed after Canada, with a significant portion of exports historically destined for the European Union for biodiesel production. However, recent years have witnessed a notable shift in export destinations towards countries such as Japan, the UAE, Pakistan, and Mexico, signaling evolving market dynamics in the global rapeseed trade.

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 To Bearish trend Projections and as well in hovering within the range of $11.0 to $12.0 per bushel.