Driven by strong crushing demand and a sharp rise in U.S. soybean oil, U.S. beans stopped falling and rebounded

The CBOT March U.S. Soybean Futures Contract (ZSH2) rose on Jan. 19, closing at 1391.5 cents/bushel, compared to closing at 1362 cents/bushel in the previous session, up 2.17%. The volume is 90,000 lots, the open position is 286,000 lots, and the previous trading day was 290,000 lots. U.S. beans rebounded due to strong crushing demand and a sharp rise in U.S. soybean oil. Analysts from international derivatives think tanks believe that on the supply side, the U.S. soybean ending stocks were raised, south American soybean production was lowered, the global soybean ending stocks were revised down, and the old soybean accumulation pool was the fourth highest since 2010; the market expectation in 2022 tended to increase the planting area of U.S. beans; the Brazilian soybean harvesting progress was slightly slower than the average of the same period in previous years, and the Argentine soybean excellent rate declined; the rain continued in South America in mid and late January, and the short-term soybean growth environment or improvement, but there was no upward adjustment information on soybean production in the market. On the demand side, NOPA's U.S. soybean crush jumped to a record high of 186.438 million bushels in December, higher than expected; U.S. vegetable oil imports surged to 1.105 billion pounds in November. In terms of exports, the export inspection volume of US beans was significantly higher than expected, increasing week-on-week; the average daily export of Brazilian soybeans in the first week of January increased sharply year-on-year; the US beans rebounded, the overall high range, temporarily wait and see, continue to track the weather in South America.

This article originated from the international derivatives think tank