Soybean Prices Dip in Anticipation of Trump and Xi's Telephone Conversation this Weekend
In the latest developments within the soybean market, we bring you a roundup of key facts and figures.
The week of September 11, 2021, saw a shift in the global soybean trade landscape. Despite a significant drop in weekly export sales compared to the same period last year, the market remains active with key players making substantial purchases.
Soybean Prices
Soybean futures have shown a slight upward trend over the past few weeks. On November 25, soybeans closed at $10.37 1/2, marking a modest increase from the previous close on March 26, which was at $10.71 1/2. However, on Thursday, soybeans experienced a slight dip, closing at $10.56 1/2 on January 26. The Cash Bean price as of Thursday is $9.60 1/2, down 6 1/4 cents from the previous day's close at $9.61 1/1.
Soybean Sales and Export Data
Weekly Export Sales data for soybeans in the week of September 11 totaled 923,018 MT, a decrease of 47.2% from the same week last year. Despite the drop, major buyers such as Mexico and Spain continued to make significant purchases. Mexico was the largest buyer of soybeans in the latest week, with 195,400 MT, followed closely by Spain at 179,400 MT.
Brazilian Soybean Crop and Sales
The Brazilian soybean crop for the 2025/26 marketing year is estimated to be 177.67 MMT, a notable increase from last year's 171.47 MMT. This increase is primarily due to an expansion in acreage. For the current marketing year, meal sales are forecasted to be in the range of 0 and 400,000 MT. Meanwhile, the 2025/26 marketing year saw meal sales tallied at 151,344 MT, and Bean oil business totaled 22,367 MT.
Global Trade Scenario
In addition to the usual trade dynamics, the week of September 11, 2021, also saw the European Union emerging as a significant player in the soybean market. The largest buyer of soybeans, besides China, during this week was the European Union, with countries like the Netherlands being major importers of soybeans from third countries.
Political Developments
On a political note, President Trump is expected to hold a phone call with China's President XI on Friday morning. This call could potentially impact the soybean market, as trade relations between the two nations have historically had a significant influence on global soybean prices.
For more information regarding this article, please refer to our Disclosure Policy, available here. Austin Schroeder, the author, did not have positions in any of the securities mentioned in this article.
