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Soybeans started the week off strong after comments from the White House saying that China is going to double their purchases of U.S. agricultural products, but the November contract closed below 1300 during today’s session. Recently soybeans have rallied back on breaks; we’ll see if that pattern continues going forward. Soybean meal was sharply higher again today, while soybean oil traded lower. If China is slow to make new purchases after the Golden Week holiday, then that could add some pressure as funds take profits. Soybean ending stocks at 310 million bushels is not particularly tight historically, and soil conditions in Brazil and Argentina are improving. Bloomberg’s pre-report survey for Friday’s crop report puts average soybean yield and ending stocks estimates at 52.9 bushels per acre and 311 million bushels, respectively, both nearly unchanged from last month.
Consider the following opportunities:
Buy the November-July Soybean Futures Spread (ZSX26-ZSN27)
PRICE: -41.25 cents
The margin is $600 per spread.
As of Friday, this spread was 36.7% of full carry.
January ‘27 Soybeans 1314 ½
Buy 1 January Soybean 1290 Put 24 1/2
Sell 1 January Soybean 1250 Put 11 1/8
Price: 13 3/8 Cost: $668.75 Debit/Trade Package, Plus Fees and Commissions.
January ’27 Soybean Options Expire 12/25/26 (78 Days)
MAXIMUM LOSS: LIMITED
Click the link below to open an account with Walsh Trading
Hans Schmit
Broker, Pure Hedge Division
312-765-7311
hschmit@walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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