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“Weekly export sales for the week ending 24/11 were confirmed at 693,838 MT.”
Soybeans fell sharply on the Chicago Stock Exchange with the reduction in the use of oil in biofuels in the United States, according to information from TF Agroeconomic. “The soybean contract for January23 closed down 2.69% or $ 39.50 cents/bushel at $ 1430.0. The May23 price, which is already being negotiated in Brazil, closed down 2.56%, or $ 38.0 cents/bushel at $ 1444.75. The soybean meal contract for October closed at a high of 0.72% or $ 3.0/ton short at $ 420.7 and the soybean oil contract for October closed at a huge drop of 9.16% or $ 6.89/pound -weight at $ 68.34”, he comments.
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“Declining vegetable oils have imposed fragility on the grain. The Environmental Protection Agency updated biofuel cut mandates in the US, and although they increased, it was not to the extent expected by the market. In this area, we interpret a lower consumption of soybean oil, anticipating a lower internal demand (and consequently higher final stocks on the balance sheet)”, he adds.
The EPA boosted the use of biofuels required for 20.82 billion gallons of renewable fuels for 2023, of which 5.82 billion would be advanced biofuels. “The previous requirement was 20.63 billion gallons, so the 2023 number is only an increase of approximately 1%. ASA and other agricultural groups are disappointed with the minimal increases, as well as some loopholes in the creation of the RIN”, he indicates.
“Weekly export sales for the week ending 24/11 were confirmed at 693,838 MT. Analysts expected to see at least 550k MT. China was the largest buyer, with 110k MT previously announced. China was also the destination for more than half (71%) of the week's exports, which was 2.1 MMT for all destinations. Accumulated soybean exports reached 19 MMT (700.5 mbu) by 24/11”, he concludes.
Source: Leonardo Gottems | agrolink
