Story
Soybean Futures Climb as Traders Await Key USDA Supply Report
Summary
Soybean futures on the Chicago Board of Trade closed higher on Monday as the market positioned itself for a potentially bullish supply and demand report from the U.S. Department of Agriculture. Analysts anticipate the agency will lower its forecasts for U.S. soybean ending stocks.
Soybean futures edged higher in Chicago on Monday after a session of fluctuating trade, as investors positioned themselves ahead of a critical U.S. government report on agricultural supply and demand.
Pre-Report Positioning
New-crop November soybean futures (ZS) on the Chicago Board of Trade (CBOT) settled 3-1/4 cents higher at $11.79-1/2 per bushel. The modest gains come as traders anticipate the U.S. Department of Agriculture's (USDA) World Agricultural Supply and Demand Estimates (WASDE) report, scheduled for release on Wednesday.
According to a survey of analysts by Reuters, the market expects the USDA to reduce its forecasts for U.S. soybean ending stocks for both the 2025-26 and 2026-27 crop years. A reduction in ending stocks, which represent leftover supply, would suggest a tighter market balance and is typically supportive of prices.
In related CBOT trading, September soymeal futures ended $3.40 lower at $305.50 per short ton, while July soyoil gained 1.29 cents to finish at 69.53 cents per pound.
AdWeather and Crop Conditions
The market's focus also remains on U.S. weather conditions during a crucial phase of crop development. Recent rainfall and cooler temperatures across the Midwest have supported crops and eased earlier concerns about potential yield losses from severe weather in July.
Ahead of the USDA's weekly crop progress report, a Reuters poll of 10 analysts indicated expectations that the agency would maintain its soybean condition rating at 63% good to excellent for a second consecutive week. August is a critical month for soybean yield potential, as adequate moisture is necessary to support the pod-filling stage of the plant's growth.
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