19.12.202512:33:16UTC+00Soybean Futures Drop to October Lows

Soybean futures have declined to approximately $10.5 per bushel, marking their lowest point since late October. This downturn is attributed to lower-than-anticipated US exports and a plentiful global supply impacting the market. Originally, the US aimed to sell 12 million tons of soybeans to China; however, actual sales have fallen short at less than 5 million tons. Despite increased purchases by Chinese state-owned enterprises such as Cofco and Sinograin in recent weeks, overall sales remain below expected commitments. Recent USDA weekly export sales data, delayed in release, indicates that by November 27, total US soybean exports were at 21.829 million tons, reflecting a 39.3% decline compared to the previous year. Concurrently, favorable weather conditions in South America have contributed to a robust supply. Brazilian soybeans, competitively priced, are projected to enter the market by late January, exerting additional downward pressure. In this context of a continuing downtrend, short-covering activity has been notably vigorous.