Soybeans Hold Near 9-Week Low

Soybean futures held around $12.30 per bushel, trading close to their lowest level in nine weeks as the rapidly advancing US harvest partly offset strong export demand. According to the USDA’s weekly report, the soybean harvest reached 79% completion as of October 25, slightly ahead of the five-year average of 77%. On the demand side, US export inspections climbed to 2.48 million metric tons for the week ended October 22, up from 2.07 million the previous week and well above the 1.16 million tons recorded a year earlier. Supply concerns also offered some relief, as a study found that Brazil’s soybean output could fall to 163.6 million metric tons under a strong El Niño scenario, compared with 181.2 million tons under neutral weather conditions. However, Brazil’s competitive position remained a concern following President Luiz Inácio Lula da Silva’s reelection, which weakened the real and could make Brazilian soybeans cheaper for overseas buyers relative to US supplies.