Soybean meal futures posted their first weekly loss for the first time in about a month following their recent surge to nine-month highs. December prices traded 1.4 percent lower this week amid speculative profit-taking. Before Monday, futures traded higher for 14 consecutive sessions as traders blew out of short positions. 

Global soybean meal FOB prices also took a step back this week. U.S. prices continued to trade well above their South American competitors. 

Soybean meal prices had been trending lower for most of this year due to strong domestic production. The prospect of China resuming U.S. soybean purchases led to the impressive meal rally due to an expected increase in competition for U.S. beans. Despite companies confirming to media outlets that China has booked U.S. soybean cargoes, future shipments are expected to fall short of previous years. 

Without a materialized trade agreement between the U.S. and China, the burden of soybean demand could still land on domestic crushing and soybean meal exports. U.S. soybean crush has been running at a record pace, according to industry data. The National Oilseed Processors Association will release updated crush data for October on Nov. 17. 

Argentina’s soybean crushings continued to operate at a record. Crushings totaled 4.13 million metric tons in September, up slightly year-over-year. Total crushings for the calendar year are running 3.3 percent ahead of last year.

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