The soybean market hit fresh lows early Monday, pressured by near-ideal weather conditions across much of the Midwest. With crops generally thriving as we move deeper into July, bearish sentiment has taken hold, limiting any significant rally attempts.
However, today’s NOPA soybean crush report provided a minor bright spot. June’s crush came in at 185.709 million bushels—slightly above market expectations. Though that’s a 3.7% decline from May’s 192.829 million bushels, it’s up 5.8% from June 2024’s previous record for the month. This signals continued solid domestic demand for soybeans, even as supply-side pressures dominate market direction.
Adding to the broader market conversation, the latest Consumer Price Index (CPI) data shows inflationary pressures moderating slightly, though consumers are still feeling elevated costs in key sectors like food and energy. That CPI softness, combined with strong crop progress and good yield potential, is helping to temper speculative buying interest in commodities across the board.
With weather patterns remaining favorable, and the market digesting strong crush numbers alongside cooling inflation data, the soybean complex may struggle to find significant upside without a fresh catalyst.
Mike Zuzolo breaks down the days Market Wrap Up
