FX.co ★ Soybeans Drop to Around 12-Week Lows

Soybean futures have declined to around $10.2 per bushel, reaching a 12-week low due to abundant supply and lukewarm demand, which have overshadowed any positive factors arising from limited stocks. This year, U.S. farmers planted 83.4 million acres of soybeans, a 4% decrease from 2024. However, this figure aligns with trade predictions and promises a robust influx from new crops once harvested. The USDA's June 1st Grain Stocks report indicated that soybean inventories stood at 1.01 billion bushels, representing a 4% increase from last year's levels, driven by an 18% year-on-year rise in off-farm holdings. This surplus has mitigated potential price surges. On the export side, the latest weekly inspection data reported shipments of 224,787 tonnes, a slight increase from the previous week but almost 30% below the pace of last year. This reflects China's persistent absence from U.S. purchasing activities, contributing to the surplus held by crushers. Additionally, favorable weather forecasts throughout the Midwest have alleviated concerns over production risks, encouraging market participants to secure profits as the month concludes.