Soybeans: Probably led lower by the energy complex – OCBC

Both meal prices (Dalian and CBOT) as well as bean futures have fallen in the past week, with crush margins also hastening a retreat, per OCBC Bank.

Key quotes

“Meal prices remain high and despite the decline, crush margins are still at 324 RMB/mt, which suggests most crush facilities in China should still be eking out gains.” 

“Exports of US beans remain weak, as the soft BRL means Brazilian beans remain the economic choice to import.” 

“Expect soybean prices to remain lacklustre for now, but to pick up around summer when Brazilian stocks run low.”