CBOT Soybean Futures Close Higher as Traders Prepare for USDA Reports

CBOT soybean futures closed higher on Thursday, boosted by trader positioning ahead of USDA reports despite harvest pressures from Brazil. May soybeans rose to $10.13 per bushel, while May soymeal fell to $297.10 per short ton and soyoil increased slightly to 42.71 cents per pound. The dollar’s strength impacts global competitiveness for U.S. commodities, and U.S. soybean sales lagged behind estimates.

Soybean futures at the Chicago Board of Trade (CBOT) experienced fluctuations amid pressures from Brazil’s abundant harvest but ultimately closed higher on Thursday. Traders adjusted positions in anticipation of forthcoming reports from the U.S. Department of Agriculture (USDA) scheduled for later this month.

The May soybeans (SK25) closed with an increase of 4-3/4 cents, settling at $10.13 per bushel. In contrast, May soymeal (SMK25) dropped 60 cents, ending at $297.10 per short ton, while May soyoil (BOK25) increased by 0.35 cents, reaching 42.71 cents per pound.

The dollar index (DXY) experienced upward movement following signals from the U.S. Federal Reserve that it would not expedite rate cuts this year due to uncertainties regarding U.S. tariffs. A stronger dollar tends to elevate prices for U.S. commodities on the international market.

Traders also prepared for the upcoming USDA reports on March 31, which will include estimates related to farmers’ planting intentions for the year 2025. Concurrently, Chinese imports of U.S. soybeans surged by 84.1% in the first two months of 2025 compared to the previous year, driven by tariff concerns.

The USDA’s recent data indicated net U.S. soybean sales of 352,600 metric tons for the 2024/25 marketing year, which fell short of trade estimates that ranged from 400,000 to 900,000 tons.

In summary, CBOT soybean futures demonstrated resilience by closing higher despite the prevailing harvest pressure from Brazil. Traders are strategically positioning themselves ahead of important USDA reports, while there has been a notable increase in Chinese imports of U.S. soybeans. However, net sales reported by the USDA did not meet market expectations, signalling potential challenges ahead for U.S. soybean exports.

Original Source: www.tradingview.com