CBOT Soybean price recovered last week on trade negotiations between the U.S. and China, which are expected to resume later this month. Soy oil prices were weaker and meal contracts were stronger in Friday close.
The monthly NOPA report indicated that its members crushed 172.346 mbu of soybeans during October, exceeding expectations. That record use was 4.93% larger than last year and up 7.19% from September. Soy oil stocks were at 1.502 billion pounds, down 1.88% from last month despite the larger crush. Soy oil shipments from the country declined by over 33% for the week ended on November 8th, which has kept soy oil prices in the international market under pressure
Overall major price supportive factor is a positive talk between US-China as discussions keep working back and forth between the U.S. and China. However, currently some caution in the oilseeds markets as reports about good weather in South America and expected to be a record soybean crop are weighing on the markets. AgRural estimates that the Brazil soybean crop is 82% planted, well above the 5-year average of 67.
Weekly soybean crop progress pegged 88% of the crop is now harvested, lagging behind the 5-year average of 93%. Soybean export sales also were on the low, but there is a slight improvement total in 6 weeks. Big cancellations to unknown and China again limit any hope for the market. Still, U.S. may not need to impose further tariffs and this situation pushed soybeans prices higher after being weaker earlier.