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USDA January Report | January 12, 2016

soybean

Market Trends Report | January 12, 2016 –

Here are a few highlights from the USDA January WASDE (World Agricultural Supply and Demand Estimates) report released today:

US Soybean ending stocks were reduced to 440 million bushels from the previous estimate of 465 million bushels
US Soybean oil ending stocks were reduced by 35 million lbs. due to an increase in bio-diesel usage and exports

World soybean carry out was reduced to 79.28 million MT from 82.58 million MT due to reductions in production for the US and China.
World oil stocks were increased slightly to 3.63 million MT from 3.60 million MT

No changes were made to the soybean production figures for Argentina (57 mil MT), Brazil (100 mil MT) and Paraguay (8.8 mil MT)

Given the cheap cost of crude petroleum and poor margins for bio-diesel the increase in usage for MethylEster is interesting.

Despite supportive data released by the USDA, soybean oil futures still could not mount a rally. Today marks the eighth trading session in which futures have failed to have any significant move to the upside. The pressure from crude petroleum oil; currently trading below $31/barrel, good weather in S. America and concern the Chinese economy is slowing down all continue to weigh on the market.

soy pricing

 

Disclaimer: Oasis Foods shares the information above to provide insight on the factors affecting the pricing of our products. It is intended to be used for informational purposes only and should not be interpreted as purchasing advice.