CBOT soybean futures closed higher despite pressure from Brazil’s bumper crop. Traders are preparing for upcoming USDA reports. May soybeans rose by 4-3/4 cents to $10.13 per bushel, while soymeal decreased. The dollar’s strength may affect U.S. commodity pricing, and Chinese soybean imports surged due to tariff concerns.
Soybean futures at the Chicago Board of Trade (CBOT) showed volatility due to a significant harvest in Brazil but ultimately finished higher on Thursday. Traders geared up for the upcoming release of data from the U.S. Department of Agriculture (USDA) set for later this month. Specifically, CBOT May soybeans (SK25) recorded a gain of 4-3/4 cents, closing at $10.13 per bushel.
In contrast, CBOT May soymeal (SMK25) closed lower by 60 cents, settling at $297.10 per short ton, while May soyoil (BOK25) edged higher, rising by 0.35 cents to reach 42.71 cents per pound. The dollar index DXY continued to rise as the U.S. Federal Reserve expressed caution regarding rate cuts, influenced by uncertainties surrounding U.S. tariffs. A stronger dollar typically renders U.S. commodities more expensive globally.
As traders prepare for the USDA reports on grain stocks and prospective planting on March 31, estimates for 2025 planting intentions will be revealed. In light of expected increased Brazilian supplies, Chinese imports of U.S. soybeans surged by 84.1% in the first two months of 2025 compared to the previous year, driven by tariff concerns prompting urgent shipments.
Last week, USDA data showed net U.S. soybean sales at 352,600 metric tons for the 2024/25 marketing year, which fell short of expectations that ranged between 400,000 and 900,000 tons. This discrepancy highlights ongoing fluctuations in the soybean market as traders evaluate the implications of both domestic and international developments.
In summary, while CBOT soybean futures experienced a higher closing price influenced by trader positioning ahead of USDA reports, they faced pressure from Brazil’s substantial harvest. The strong U.S. dollar also impacted market dynamics, making U.S. soy products relatively costlier on the global stage. Notably, a sharp increase in Chinese imports and lower-than-expected net U.S. sales could shift market trends in the near future.
Original Source: www.tradingview.com
