Price action: July soybeans rose 23 cents to $13.52 1/2, the highest close since May 16 and gained 15 1/4 cents on the week. For daily market recaps and insights for crops and livestock, start a Pro Farmer trial - sign up here.
5-day outlook: Soybeans were able to grab solid gains to end the shortened Memorial Day week on heightened volatility amid rising concerns over expanding dryness throughout the Midwest. While the recent trend of drier-biased weather has led to a record planting pace across the Corn Belt, a lack of forecast moisture over the next ten days could largely jeopardize crop potential as the growing season progresses. World Weather Inc. indicates, however, temperatures throughout the Midwest will trend cooler after early next week and milder conditions will prevail for a while, helping keep stress on summer crops as low as possible with the ground staying dry.
30-day outlook: USDA’s June 30 Acreage report will provide market insight around the number of planted acres throughout the country, though USDA’s weekly crop condition scores will largely factor into the data. Based on the government’s initial end-of-March projections of 87.5 million acres of soybeans, at a pace of 83% completed as of May 28, 14.875 million acres of soybeans were yet to be planted. While persisting conditions favorable for planting will likely see the biggest part of these acres planted, summer, namely August, weather will ultimately dictate the size of the U.S. crop.
90-day outlook: Floundering U.S. exports have cast a shadow across futures as importing countries look to fresh South American supplies amid a Brazilian bumper crop. Though top importing China’s needs have apparently dwindled as the country faces a weaker-than-expected recovery from its strict lockdowns, which were removed late last year. Traders will continue to closely monitor U.S. exports to continue to gauge the health of the global economy. Earlier today, USDA reported net weekly old-crop export sales of 123,400 MT during the week ended May 25, which were up 7% from the previous week and 16% from the four-week average. New crop sales of 301,000 MT were also reported for the week, China being the main purchaser. Soymeal exports have recently proven steady in the wake of severe drought in top meal exporter, Argentina. Net sales totaled 405,400 MT for the week and were up 19% from the previous week and 62% from the four-week average. New crop sales of 61,900 MT were also reported for the week, with “unknown destinations” the top buyer.
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