Beans Close in Red

Soybeans closed 6 3/4 to 10 3/4 cents lower in the red with double digit losses in new crop futures. Bean meal traded down by as much as $5/ton. Soy oil futures also closed in the red with losses of 7 to 8 points per lb. USDA estimates soybean production at 4.135 bbu, which was a smaller than expected increase. Shifting residual use from 4 mbu to a negative 46 mbu, 2019/20 carryout was up to 620 mbu. New crop ending stocks were also up by more than expected, with a 30 mbu bump to 425. Despite the larger ending stocks, USDA raised the new crop bean cash price 30 cents to $8.50/bu. World bean carryout was increased 480k MT to 99.7 MMT for old crop, but new crop was 1.26 MMT lower at 95.08. Brazilian old crop bean production was hiked to 126 MMT, larger than any of the published pre-report estimates. In the weekly CoT report, soybean spec traders were 99,243 contracts net long on July 7. That was the largest net long since May 29 of 2018. Managed money’s net short in soymeal was down 58% wk/wk to 21,910 contracts. Managed money expanded their net long in soybean oil to 19,418 contracts (the largest net long since Feb 25th).

Jul 20 Soybeans closed at $8.91 1/2, down 6 3/4 cents,

Aug 20 Soybeans closed at $8.87 1/4, down 9 1/4 cents,

Sep 20 Soybeans closed at $8.85 1/2, down 9 3/4 cents,

Nov 20 Soybeans closed at $8.90 3/4, down 10 3/4 cents,

Aug 20 Soybean Meal closed at $292.50, down $4.80

Aug 20 Soybean Oil closed at $28.22, down $0.07

--- provided by Brugler Marketing & Management

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