Soybeans Close Higher On Lower Production Number

Soybean futures saw moderate 3 to 5 cent gains in most contracts on Thursday. Nearby July soybean meal was up $2.50/ton, with soy oil up 10 points. The monthly WASDE from USDA showed 18/19 soybean ending stocks down 20 mbu from June at 1.05 bbu. Most of that was an increase to residual use. Production for 2019 was slashed by 305 mbu to 3.845 bbu this morning. That came via the drop in acreage shown on June 28 and a 1 bpa reduction to yield at 48.5 bpa. New crop carryout is back below the 1 bbu mark, being trimmed by 250 mbu to 795. World ending stocks saw very few adjustments for 18/19 to 112.98 MMT (+0.18), with new crop down a sharp 8.13 to 104.53 MMT primarily on the US cut. This morning’s USDA Export Sales report tallied old crop soybean sales at 132,163 MT for the week of 7/4. That was a 9-week low and down 16.7% yr/yr. New crop sales totaled 129,500 MT for that week.

JUL 19 Soybeans closed at $8.96 1/4, up 3 1/4 cents,

AUG 19 Soybeans closed at $8.99, up 4 1/2 cents,

SEP 19 Soybeans closed at $9.05, up 4 3/4 cents,

NOV 19 Soybeans closed at $9.17 1/4, up 4 1/2 cents,

JUL 19 Soybean Meal closed at $311.60, up $2.50,

JUL 19 Soybean Oil closed at $28.07, up $0.10

--provided by Brugler Marketing & Management

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