US soybean meal exports exceed expectations

The USDA’s weekly export sales report shows that U.S. soybean meal export sales reached 640,000 tonnes for the week ending October 23, exceeding previous market expectations of 50,000-500,000 tonnes.

The USDA report states that soybean meal export sales reached 640,000 tonnes, significantly exceeding the market’s upper-bound estimate of 50,000-500,000 tonnes. This indicates strong, better-than-expected international demand. This will support the spot price of soybean meal, as increased exports reflect a tightening supply and demand, which could push the spot price higher. Based on soybean meal futures data from the Dalian Commodity Exchange (such as the settlement price of contract 2601 at 3044 yuan per tonne, with an upside or downside of -6), this positive news could ease the current downward pressure and even lead to higher futures prices, as rising demand bolsters market confidence. Overall, this is considered a generally positive development with a positive bias.

Tags: soybean meal, USA